Expert Outlook: Allison Transmission Through The Eyes Of 9 Analysts
Benzinga Insights 8 months ago
Analyst Ratings
9 analysts have expressed a variety of opinions on Allison Transmission (NYSE:ALSN) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 1 | 6 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 4 | 0 | 0 |
| 3M Ago | 2 | 0 | 2 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $110.78, with a high estimate of $135.00 and a low estimate of $98.00. This upward trend is evident, with the current average reflecting a 11.53% increase from the previous average price target of $99.33.
Investigating Analyst Ratings: An Elaborate Study
A comprehensive examination of how financial experts perceive Allison Transmission is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Ian Zaffino | Oppenheimer | Raises | Outperform | $135.00 | $115.00 |
| Angel Castillo | Morgan Stanley | Raises | Equal-Weight | $109.00 | $97.00 |
| Jerry Revich | Wells Fargo | Raises | Equal-Weight | $98.00 | $85.00 |
| Tami Zakaria | JP Morgan | Raises | Neutral | $115.00 | $87.00 |
| Kyle Menges | Citigroup | Raises | Neutral | $110.00 | $105.00 |
| Tim Thein | Raymond James | Raises | Strong Buy | $115.00 | $110.00 |
| Kyle Menges | Citigroup | Raises | Neutral | $105.00 | $100.00 |
| Kyle Menges | Citigroup | Raises | Neutral | $100.00 | $90.00 |
| Tim Thein | Raymond James | Raises | Strong Buy | $110.00 | $105.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Allison Transmission. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Allison Transmission compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Allison Transmission's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Allison Transmission's market position. Stay informed and make well-judged 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 medium- and heavy-duty commercial vehicles. Its 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 commands approximately 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 motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
Allison Transmission's Financial Performance
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Challenges: Allison Transmission's revenue growth over 3M faced difficulties. As of 30 September, 2025, the company experienced a decline of approximately -15.9%. This indicates a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Allison Transmission's net margin is impressive, surpassing industry averages. With a net margin of 19.77%, 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 7.62%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Allison Transmission's ROA excels beyond industry benchmarks, reaching 2.51%. This signifies efficient management of assets and strong financial health.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.3, caution is advised due to increased financial risk.
Analyst Ratings: What Are They?
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.
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.