As the fourth quarter gets underway, there are some stocks that may be poised to outperform over the next several months, according to Citi.
"Now, broadening is apparent, with Value leading while Growth has not yet achieved July levels," Scott Chronert said in a Friday note to clients.
Citi views newly added Ally Financial as "one of the best-positioned liability sensitive names," seeing the potential for total book value growth of 25% by the fourth quarter of next year.
"While mistakes were clearly made with the '22 auto vintage, the short duration of this asset class implies ALLY will not be stuck with the problem beyond 2025," analyst Keith Horowitz wrote.
Meanwhile, Citi has a buy rating on the stock, and its price target of $50 implies nearly 45% upside from Wednesday's close.
Persons:
Scott Chronert, Keith Horowitz, Horowitz, Ally, Stephen Trent, Filippo Falorni
Organizations:
Citi, Nasdaq, Dow Jones, North America, Biosciences, Alnylam Pharmaceuticals, Ally, United Airlines, United