Bank of America (BofA) has revised its outlook on Allison Transmission (ALSN, Financial), reducing the company's price target from $74 to $72 while maintaining an "Underperform" rating on the stock. The investment firm anticipates a difficult environment for earnings within the Machinery, Engineering & Construction (E&C), and Waste sectors.
BofA analysts suggest that companies in these sectors are facing a potential "lose-lose" scenario. With ongoing uncertainty, firms may either revise their guidance downward or risk seeming disconnected from current market conditions. This complex situation has prompted BofA to adjust its expectations across the sector.
In light of these challenges, BofA is shifting its focus towards services such as aggregates, rentals, and waste management, which they perceive as more stable, distancing itself from original equipment manufacturers. This strategic realignment aims to navigate the uncertainties that currently overshadow the sector's outlook.
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 12.03% from the current price of $85.82. 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 $67.06, suggesting a downside of 21.86% from the current price of $85.82. 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.
