The Analyst Verdict: Allison Transmission In The Eyes Of 4 Experts

Ratings for Allison Transmission ALSN were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 1 2 0 1
Last 30D 0 0 1 0 0
1M Ago 0 1 0 0 0
2M Ago 0 0 0 0 1
3M Ago 0 0 1 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $72.75, a high estimate of $90.00, and a low estimate of $55.00. Marking an increase of 17.34%, the current average surpasses the previous average price target of $62.00.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Allison Transmission among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Tami Zakaria JP Morgan Raises Neutral $78.00 $70.00
Ian Zaffino Oppenheimer Raises Outperform $90.00 $67.00
Jerry Revich Goldman Sachs Raises Sell $55.00 $48.00
Luke Junk Baird Raises Neutral $68.00 $63.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Allison Transmission. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Allison Transmission compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Allison Transmission's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Allison Transmission's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Allison Transmission analyst ratings.

About Allison Transmission

Allison Transmission is the largest manufacturer of fully automatic transmissions for commercial vehicles. The company's automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business has approximately 60% global market share. The company's transmissions can be found in Class 4 through Class 8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motor homes). Allison also produces electric hybrid propulsion systems and is developing e-powertrains.

Key Indicators: Allison Transmission's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Allison Transmission displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 7.94%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Allison Transmission's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 21.94%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Allison Transmission's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 14.07%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Allison Transmission's ROA excels beyond industry benchmarks, reaching 3.4%. This signifies efficient management of assets and strong financial health.

Debt Management: Allison Transmission's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.03, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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