Allison Transmission (ALSN) PT Lowered to $105 at Raymond James

Raymond James analyst Tim Thein lowered the price target on Allison Transmission (NYSE: ALSN) to $105.00 (from $110.00) while maintaining a Outperform rating.

The analyst comments "We rate ALSN Outperform. While the outlook for its North American on-highway customers has become more difficult in recent months, we believe the multiple adequately reflects a cut to ALSN’s full-year guidance. We remain optimistic on the margin durability of ALSN due in part to its solid price capture, which provides a differentiating factor among truck suppliers. We think the current valuation multiple under-appreciates the quality of the franchise (average ~60% return on tangible capital) and consistency of cash generation. In addition, it has become more apparent that EV adoption faces an even longer, tougher road in most segments of the commercial vehicle space especially in light of the recent EPA “review” of EPA27 and GHG-3. Easing of EV overhang presents upside to our target multiple on ALSN."

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