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Morgan Stanley Expects Solid 2Q14 Earnings From Allison Transmission

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In a report published Thursday, Morgan Stanley analyst Nicole DeBlase reiterated an Equal-Weight rating and $35.00 price target on Allison Transmission (NYSE: ALSN).

In the report, Morgan Stanley noted, “While a cyclical rebound in NA On- and Off-Highway could add to ALSN's EPS vs. current levels, we believe this will be partially offset by continued weakness in Defense, NA Hybrid, and to a lesser degree, Off-Highway (although we see the potential for some recovery in Energy). The most significant driver of potential earnings upside at ALSN is successful penetration of new geographies with FAT technology–and we believe that cultural preferences could continue to be a medium-term barrier. We do expect the company to have success penetrating new verticals within NA, albeit market share needs to reach ~50% before the earnings contribution becomes notable (30%+ vs. 2013 results).”

Allison Transmission closed on Wednesday at $31.77.

Latest Ratings for ALSN

DateFirmActionFromTo
Jul 2019Initiates Coverage OnEqual-Weight
Mar 2019DowngradesBuyHold
Feb 2019MaintainsOutperformOutperform

View More Analyst Ratings for ALSN
View the Latest Analyst Ratings

Posted-In: Morgan Stanley Nicole DeblaseAnalyst Color Reiteration Analyst Ratings

 

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MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
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