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 latest commentary suggests adjustments to their EBITDA forecasts for the years 2024-2026, with an average increase of 2% to reflect the escalated production rates of class 8 straight trucks. Current production levels have reached 10,000 units per month, compared to a historical range of 2,000 to 12,000. The firm also notes a deceleration in the demand for electric vehicles.
Allison Transmission's third quarter was characterized as another instance of surpassing expectations, prompting an incremental raise in topline estimates for 2024 by 1%, as well as a 3% increase in the adjusted EBITDA estimate for the same year following the recent quarterly report. The company is recognized as a beneficiary of the sustained demand for vocational trucks, which are demonstrating greater resilience and warranting a higher valuation multiple. Nonetheless, there persists a sense of caution regarding the company's margin progression from one business cycle to the next.
Allison Transmission's positive outlook and strong market dynamics are highlighted by robust demand in its primary NA On-Highway and Defense end-markets. The company's impressive performance in Q3, surpassing expectations, is complemented by a raised forecast for FY24, underscoring sustained demand in the NA On-Highway sector.
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