Morgan Stanley analyst Angel Castillo maintained a Hold rating on Allison Transmission Holdings today and set a price target of $109.00.
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Angel Castillo has given his Hold rating due to a combination of factors, including a mixed set of quarterly results and guidance that appears deliberately cautious. While fourth-quarter adjusted EBITDA modestly surpassed his forecast and consensus, the company fell short on sales in key segments such as Defense and Service Parts & Other, which tempers the overall fundamental momentum.
At the same time, Allison’s 2026 revenue outlook is stronger than the market anticipated, but its EBITDA guidance sits below prior expectations and implies lower margins, even before factoring in synergies from the recent off-highway acquisition. Investor sentiment had already turned constructive after earlier order data and share outperformance, so much of the good news may be reflected in the stock, leading Castillo to see limited near-term upside and to maintain a Hold stance.