UPDATE: Morgan Stanley Upgrades Allison Transmission As Cash Is King

In a report published Wednesday, Morgan Stanley analyst Nicole DeBlase upgraded the rating on Allison Transmission Holdings Inc. (NYSE: ALSN) from Equal-Weight to Overweight, and raised the price target from $34.00 to $38.00.In the report, Morgan Stanley noted, "In our view, investors will find ALSN's strong FCF generation profile and position in the cycle increasingly attractive, resulting in a higher P/FCF multiple vs. peers. We see attractive 20% upside to our new $38 price target; as such, we upgrade to Overweight."Allison Transmission closed on Tuesday at $31.74.