6 Analysts Assess Allison Transmission: What You Need To Know

In the latest quarter, 6 analysts provided ratings for Allison Transmission ALSN, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated Allison Transmission and provided 12-month price targets. The average target is $116.0, accompanied by a high estimate of $130.00 and a low estimate of $94.00. This upward trend is apparent, with the current average reflecting a 2.05% increase from the previous average price target of $113.67.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Allison Transmission. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Gaining insights, analysts provide 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.

Get to Know Allison Transmission Better

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.

Allison Transmission's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Allison Transmission displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 11.96%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Allison Transmission's net margin excels beyond industry benchmarks, reaching 24.27%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Allison Transmission's ROE excels beyond industry benchmarks, reaching 12.88%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Allison Transmission's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.79%, the company showcases efficient use of assets and strong financial health.

Debt Management: Allison Transmission's debt-to-equity ratio stands notably higher than the industry average, reaching 1.48. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

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.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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