JP Morgan lifts Allison Transmission's PT on revenue growth potential

Allison Transmission Holdings

14/11/2024 11:34

** J.P. Morgan lifts PT of vehicle propulsion systems maker
Allison Transmission  ALSN.N  to $130 from $100, maintains
"neutral" rating
    ** New PT represents a 9.3% upside to the stock's last close
    ** Brokerage expects "above-consensus" truck building
industry outlook for 2025 and ALSN's planned price acceleration
helping revenue growth
    ** "Demand for straight trucks remains robust based on
pent-up demand from municipalities and incremental demand for
vocational trucks from infrastructure projects" - JPM
    ** Says co's revenue growth to further benefit from
expanding fabrication capacity in a lower-cost location of
India, helping offset margin pressure from wage inflation from
UAW contract
    ** Three brokerages rate the stock "buy" or higher, four
"hold" and two "sell"; their median PT is $112.50 - LSEG data
    ** Up to last close, stock up 104.5% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))