CLSA initiated coverage on Allison Transmission Holding Inc ALSN with an Outperform Rating and $31 target price.
Allison is a " op-quality company facing choppy end market," according to analyst Kristine Kubacki. Monitoring end market inventory levels, Kubacki claimed that medium-duty and Class 8 straight truck inventories became elevated from product launches early in the year, but should correct in the next several quarters.
"More than offsetting any negative factors," said Kubacki, "we see new market opportunities, further margin expansion and an Free Cash Flow yield in excess of 10% as key positives in the ALSN story."
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.