UPDATE: JP Morgan Reduces PT to $19 on Allison Transmission Holdings Post Q2 Call

JP Morgan reiterated its Neutral rating on Allison Transmission Holdings

and reduced its price target from $23 to $19. JP Morgan commented, "Our Neutral rating balances ALSN's long-term growth potential with near term cyclical headwinds and lack of visibility. ALSN's success going forward will be determined by the cyclical recovery in NA construction, private fleet and municipal markets, as well as a recovery in investments in oil/gas. … We are lowering our December 2012 price target from $23 to $19 on the back of our lower estimates. Our price target of $19 implies an 8.3x EV/adjusted EBITDA 2012E, about in-line with a broad peer group which we think is appropriate given the balanced risks and rewards." Allison Transmission Holdings closed at $18.39 on Monday.