What 4 Analyst Ratings Have To Say About Allison Transmission

Throughout the last three months, 4 analysts have evaluated Allison Transmission ALSN, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $81.75, a high estimate of $90.00, and a low estimate of $72.00. This upward trend is evident, with the current average reflecting a 9.0% increase from the previous average price target of $75.00.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Allison Transmission by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Allison Transmission. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.

Capture valuable insights into Allison Transmission's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Allison Transmission analyst ratings.

Discovering Allison Transmission: A Closer Look

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 about 60% global market share. The company's transmissions can be found in Class 4-8 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.

Financial Milestones: Allison Transmission's Journey

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's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 3.42%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Allison Transmission's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 22.92% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Allison Transmission's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 13.23%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Allison Transmission's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.66%, the company showcases efficient use 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 1.62, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding the Relevance 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.