Analyst Sherif El-Sabbahy of Bank of America Securities reiterated a Sell rating on Allison Transmission Holdings, boosting the price target to $95.00.
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Sherif El-Sabbahy has given his Sell rating due to a combination of factors related to Allison Transmission’s outlook and valuation. While the company delivered stronger-than-expected Q4 revenue and EBITDA, the initial 2026 guidance for profitability came in below market forecasts, with tariffs and weaker North American On-Highway and Off-Highway demand expected to weigh on margins and mix.
Management’s 2026 EBITDA and free cash flow projections trail consensus despite a sales forecast that is modestly ahead, highlighting pressure on earnings quality rather than topline growth. El-Sabbahy also views the current trading multiple as stretched relative to his $95 price objective, especially in light of integration risks, greater exposure to Europe and Off-Highway, and the expectation that key end markets are at or near cyclical troughs, limiting near-term upside.
According to TipRanks, El-Sabbahy is a 4-star analyst with an average return of 9.1% and a 54.21% success rate. El-Sabbahy covers the Industrials sector, focusing on stocks such as Quanta Services, Blue Bird, and Legence Corp. Class A.