7 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 summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 4 | 1 | 1 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 1 | 1 | 1 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $102.29, along with a high estimate of $125.00 and a low estimate of $77.00. This upward trend is apparent, with the current average reflecting a 14.75% increase from the previous average price target of $89.14.
Understanding Analyst Ratings: A Comprehensive Breakdown
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 |
|---|---|---|---|---|---|
| Kyle Menges | Citigroup | Raises | Neutral | $125.00 | $115.00 |
| Jerry Revich | Goldman Sachs | Raises | Sell | $82.00 | $72.00 |
| Sherif El-Sabbahy | B of A Securities | Raises | Underperform | $77.00 | $67.00 |
| Ian Zaffino | Oppenheimer | Raises | Outperform | $115.00 | $90.00 |
| Luke Junk | Baird | Raises | Neutral | $108.00 | $103.00 |
| Tami Zakaria | JP Morgan | Raises | Neutral | $100.00 | $80.00 |
| Kyle Menges | Citigroup | Raises | Neutral | $109.00 | $97.00 |
Key Insights: Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction 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: Gaining insights, analysts provide estimates for the future value of Allison Transmission's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Allison Transmission's market position. Stay informed and make well-informed 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 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.
Financial Insights: Allison Transmission
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Over the 3 months period, Allison Transmission showcased positive performance, achieving a revenue growth rate of 11.96% as of 30 September, 2024. This reflects a substantial increase in the company's 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 24.27%, the company showcases strong profitability and effective cost management.
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 is notably higher than the industry average. With a ratio of 1.48, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Basics of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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Latest Ratings for ALSN
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Feb 2022 | Credit Suisse | Downgrades | Outperform | Neutral |
| Feb 2022 | Morgan Stanley | Maintains | Underweight | |
| Dec 2021 | Morgan Stanley | Downgrades | Equal-Weight | Underweight |
View More Analyst Ratings for ALSN
View the Latest Analyst Ratings
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
