** Shares of Ally Financial ALLY.N up 2.3% premarket to $40.72 after TD Cowen upgrades consumer lender to 'buy' from 'hold'

** Brokerage boosts PT by $7 to $50, implying about 26% upside to stock's close on Fri

** TD Cowen says believes ALLY has "now shown that it has sufficient credit and margin strength to hit its mid-teens ROTCE (return on tangible common equity) target in the next two years and perhaps sooner"

** ALLY shares on Fri finished up 3.6% at $39.82 after co posted Q3 profit beat as provision for credit losses shrank by $230 mln from a year ago

** A clutch of bad loans at banks in recent weeks has shaken investor confidence, as unease mounted over credit risks

** Also, JP Morgan boosts its PT on ALLY by $1 to $43 and Truist raises its PT by $2 to $47

** Of 20 brokerages covering ALLY, recommendation breakdown is 13 "strong buy" or "buy", rest "hold"; median PT is $46, according to LSEG data

** Through Fri close, ALLY shares up about 11% YTD

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com ; 1-646-279-6380))