Morgan Stanley has revised its price target for Allison Transmission Holdings (ALSN, Financial), reducing it from $112 to $94 per share while maintaining an Equal Weight rating. This adjustment is a response to what the firm describes as a "dynamic macro backdrop" impacting its forecasts and evaluations.
In light of evolving economic conditions, Morgan Stanley has updated its 2025 estimates for machinery and construction sectors, reflecting a more cautious stance amid potential recessionary pressures. The firm has also reassessed its stock ratings to better align with its analysis of risk-adjusted returns and the broader market context, including tariff concerns and demand outlooks.
The revised price target and ratings adjustments aim to provide a more accurate reflection of market positioning and risks, acknowledging that many investors might already be anticipating a weaker economic scenario. These changes illustrate Morgan Stanley's proactive approach to adapting its investment strategies to current economic realities and perceived market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Allison Transmission Holdings Inc (ALSN, Financial) is $96.14 with a high estimate of $115.00 and a low estimate of $74.00. The average target implies an upside of 7.99% from the current price of $89.03. More detailed estimate data can be found on the Allison Transmission Holdings Inc (ALSN) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Allison Transmission Holdings Inc's (ALSN, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Allison Transmission Holdings Inc (ALSN, Financial) in one year is $67.60, suggesting a downside of 24.07% from the current price of $89.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Allison Transmission Holdings Inc (ALSN) Summary page.
