Goldman Sachs analyst Jerry Revich maintains $Allison Transmission (ALSN.US)$ with a sell rating, and adjusts the target price from $72 to $82.
According to TipRanks data, the analyst has a success rate of 63.3% and a total average return of 10.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Allison Transmission (ALSN.US)$'s main analysts recently are as follows:
The firm's expectations for Allison Transmission's profitability have been adjusted upward, with an increase in EBITDA estimates for 2024-2026 by approximately 2% on average. This revision is due to higher production rates of class 8 straight trucks, currently at 10,000 units per month, compared to a historical range of 2,000 to 12,000. Additionally, the slowing demand for electric vehicles is also taken into consideration.
Allison Transmission's third quarter results surpassed expectations, prompting a revision of the 2024 revenue estimate upwards by 1% and the 2024 adjusted EBITDA estimate by 3%. The company is gaining from a sustained demand in vocational trucks, which has shown resilience and warrants a more generous valuation. However, there are still apprehensions regarding the consistency of margin improvement from one business cycle to the next.
Optimism for Allison Transmission arises from the bullish outlook and favorable conditions within the company's primary North American On-Highway market. The company has reported a robust third-quarter performance, propelled by strong demand across both North American and International On-Highway markets as well as the Defense sector. Following these results, the company has increased its full-year guidance for 2024.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
