Freedom Broker raises Allison Transmission stock price target on strong Q3 results
Investing.com ·
Freedom Broker raises Allison Transmission stock price target on strong Q3 results
Investing.com - Freedom Broker raised its price target on Allison Transmission shares (NYSE:ALSN) to $147 from $144 while maintaining a Buy rating following the company’s third-quarter results.
The company delivered third-quarter results that exceeded Freedom Broker’s expectations on revenue, EBITDA and earnings per share. The outperformance came almost entirely from the legacy Transmission business, which posted record sales driven by strong North American medium-duty and vocational demand, healthy pricing and growth across all end markets. The strong performance has contributed to a 44% return over the past year, while InvestingPro analysis suggests the stock remains undervalued relative to its Fair Value, trading at a P/E ratio of 16.92.
Margins were less impressive as the lower-margin Off-Highway business diluted the mix and higher material costs absorbed part of the benefit from volume and price. Most of the profit upside came from cost control rather than gross margin expansion.
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