Citi cuts PTs of commercial vehicle makers on dour 2025 outlook

Allison Transmission Holdings

31/03/2025 16:02

** Citi Research cuts PT of commercial vehicle makers Cummins CMI.N to $360 from $430, Allison Transmission ALSN.N to $108 from $115 and PACCAR PCAR.O to $105 from $112

** Brokerage cites ACT Research's recent cuts to its North America commercial vehicle outlook and sluggish freight market condition

** Says dealers are seeing 'order paralysis' setting in amongst fleet customers as they await clarity on Trump administration tariff policy and potential changes to EPA's 2027 emissions standards

** Says CMI has least downside risk within brokerage's coverage based on more diversified geographic/product exposure and stable pricing

** Sees most downside risk for ALSN due to its high degree of operating leverage and sizeable exposure to North America truck market, followed by PCAR with the most direct exposure to same market

** Including session's moves, the Dow Jones U.S. Commercial Vehicles & Trucks Index .DJUSHR has fallen 4.4% YTD

 (Reporting by Aatreyee Dasgupta)

 ((Aatreyee.Dasgupta@thomsonreuters.com))