Allison Transmission Holdings Inc (ALSN) Receives a Buy from Oppenheimer


Oppenheimer analyst Ian Zaffino maintained a Buy rating on Allison Transmission Holdings Inc (ALSN) yesterday and set a price target of $53. The company’s shares opened today at $49.39.

Zaffino observed:

“Adjusted EBITDA of $261M beat our/Street’s estimates of $233M/$241M, owing to strength in North America On-Highway and Outside North America Off-Highway. However, owing to lower demand in fracking, as well as a likely dose of conservatism, FY19 guidance calls for revenue of $2,580M-$2,680M (down ~1.2%-4.9% YoY) and adjusted EBITDA of $1,000M-$1,060M (down ~6.0%-11.3% YoY). As a result, we lower 2019E EBITDA to $1,030M from $1,100M. Maintain Outperform based on strength in core NA On-Highway, pricing power, growth initiatives and 2019E FCF ($550M-$600M). We raise our price target to $53 from $50.”

According to TipRanks.com, Zaffino is a 3-star analyst with an average return of 1.5% and a 52.9% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Wyndham Hotels & Resorts Inc, and frontdoor inc.

The word on The Street in general, suggests a Hold analyst consensus rating for Allison Transmission Holdings Inc with a $44.67 average price target.

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Allison Transmission Holdings Inc’s market cap is currently $6.53B and has a P/E ratio of 9.78. The company has a Price to Book ratio of 9.55.

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Allison Transmission Holdings, Inc. engages in the manufacture and distribution of fully-automatic transmissions. Its products include on-highway, off-highway, and tracked military. The company was founded on June 22, 2007 and is headquartered in Indianapolis, IN.