Sherif El-Sabbahy, an analyst from Bank of America Securities, reiterated the Sell rating on Allison Transmission Holdings (ALSN – Research Report). The associated price target is $74.00.
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Sherif El-Sabbahy has given his Sell rating due to a combination of factors influencing Allison Transmission Holdings’ future performance. The company reported mixed Q4 results, with revenue slightly surpassing expectations but EBITDA falling short, mainly due to a less favorable service mix and foreign exchange impacts. Additionally, the gross margin saw a contraction more significant than anticipated, raising concerns about profitability.
Allison’s initial guidance for 2025 also fell below consensus expectations, with projected sales and EBITDA both underperforming market expectations. Despite anticipated pricing gains, these are being offset by declining volumes, especially in the service parts segment, and global off-highway markets continue to face contraction. The company also faces potential cost pressures from raw materials and purchased components, further impacting future financials. These factors contribute to the decision to reiterate a Sell rating with a lowered price objective.
According to TipRanks, El-Sabbahy is ranked #1806 out of 9369 analysts.