Allison Transmission Holdings Inc (ALSN) Receives a Hold from Mizuho Securities


Mizuho Securities analyst Kristine Kubacki maintained a Hold rating on Allison Transmission Holdings Inc (ALSN) yesterday and set a price target of $53. The company’s shares closed yesterday at $51.69, close to its 52-week high of $53.76.

Kubacki noted:

“We recently downgraded ALSN on worries over falling energy capex in NA, approaching peaks in NA on-highway end-markets and slowing global end-markets. As we had feared, ALSN guided to a softer environment in 2019 due to many of these reasons. We consider ALSN best in breed and instead of meaningful downside risk we see it harder to argue for increased valuation of the shares at this point. Post conference call we will update our estimates. ALSN reported 4Q18 adjusted EPS of $1.14 (vs. Mizuho est. $0.95/consensus est. $1.13) Adjusted EPS was down 13%YoY from 4Q17’s adjusted EPS of $1.31. ALSN reported 4Q18 sales of $647M (vs. Mizuho est. $646M/consensus est. $633M), up 10% YoY from 4Q17 sales of $588M. The increase in net sales was driven by higher demand in N.A. On-Highway, Defense, Outside NA Parts, slightly offset by Global Off-Highway.”

According to TipRanks.com, Kubacki is a 3-star analyst with an average return of 6.7% and a 53.8% success rate. Kubacki covers the Industrial Goods sector, focusing on stocks such as Trinity Industries, Westinghouse Air, and WABCO Holdings.

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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Based on Allison Transmission Holdings Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $692 million and net profit of $167 million. In comparison, last year the company earned revenue of $588 million and had a net profit of $215 million.

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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.