Breaking Down Allison Transmission: 9 Analysts Share Their Views

Throughout the last three months, 9 analysts have evaluated Allison Transmission (NYSE: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.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 1 7 0 1
Last 30D 0 0 0 0 1
1M Ago 0 0 1 0 0
2M Ago 0 1 5 0 0
3M Ago 0 0 1 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $100.56, a high estimate of $110.00, and a low estimate of $90.00. Highlighting a 8.21% decrease, the current average has fallen from the previous average price target of $109.56.

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
Jerry Revich Goldman Sachs Raises Sell $90.00 $80.00
Angel Castillo Morgan Stanley Raises Equal-Weight $100.00 $94.00
Angel Castillo Morgan Stanley Lowers Equal-Weight $94.00 $112.00
Luke Junk Baird Lowers Neutral $100.00 $123.00
Tim Thein Raymond James Lowers Outperform $110.00 $115.00
Tami Zakaria JP Morgan Lowers Neutral $98.00 $110.00
Kyle Menges Citigroup Lowers Neutral $95.00 $108.00
Kyle Menges Citigroup Lowers Neutral $108.00 $115.00
Tami Zakaria JP Morgan Lowers Neutral $110.00 $129.00

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 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 provide insights into price targets, offering estimates for the future value of Allison Transmission's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Allison Transmission's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Allison Transmission analyst ratings.

All You Need to Know 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 about 60%global marketshare. 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.

Unraveling the Financial Story of Allison Transmission

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Allison Transmission's revenue growth over 3M faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -2.92%. This indicates a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Allison Transmission's net margin is impressive, surpassing industry averages. With a net margin of 25.07%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Allison Transmission's ROE stands out, surpassing industry averages. With an impressive ROE of 11.58%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Allison Transmission's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.59%, the company showcases efficient use of assets and strong financial health.

Debt Management: Allison Transmission's debt-to-equity ratio surpasses industry norms, standing at 1.44. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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.

Latest Ratings for ALSN

DateFirmActionFromTo
May 2025Goldman SachsMaintainsSellSell
May 2025Morgan StanleyMaintainsEqual-WeightEqual-Weight
Apr 2025Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for ALSN

View the Latest Analyst Ratings

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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