Demystifying Allison Transmission: Insights From 9 Analyst Reviews

Throughout the last three months, 9 analysts have evaluated Allison Transmission ALSN, offering a diverse set of opinions from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $97.11, along with a high estimate of $110.00 and a low estimate of $79.00. Observing a downward trend, the current average is 6.12% lower than the prior average price target of $103.44.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive Allison Transmission. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Allison Transmission. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Allison Transmission compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

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.

Unveiling the Story Behind Allison Transmission

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 market share. 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.

Allison Transmission: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Challenges: Allison Transmission's revenue growth over 3M faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -2.92%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Allison Transmission's net margin is impressive, surpassing industry averages. With a net margin of 25.07%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Allison Transmission's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.58% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Allison Transmission's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.59% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Allison Transmission's debt-to-equity ratio stands notably higher than the industry average, reaching 1.44. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.