Allison Transmission: Expecting High Single-Digit Growth This Year

Robert F. Abbott
1.3K Followers
(14min)

Summary

  • Allison Transmission continues its multi-year earnings growth streak, driven by productivity gains, share buybacks, and organic growth drivers across global markets.
  • The company is largely insulated from tariffs, boasts strong institutional ownership, and is expanding in electrification and new international markets.
  • The stock remains modestly undervalued to fairly valued, with a one-year price target of $111.69, reflecting ongoing earnings momentum and operational efficiency.
  • I maintain my 'Buy' rating on ALSN, expecting further share price appreciation, supported by robust fundamentals and stability from high institutional ownership.

Gearbox of commercial truck

AntonMatveev

Investment Thesis

Allison Transmission Holdings, Inc. (NYSE:ALSN) has delivered another quarter of good earnings growth, extending a streak that began in 2021.

It seems likely that growth will continue. The company claims to be mostly insulated from the effects of

This article was written by

1.3K Followers
Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada, Robert has earned Bachelor of Arts and Master of Business Administration (MBA) degrees.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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