Allison Transmission Holdings Inc experienced a price increase of 4.05%, reaching a 20-day high. This movement comes amid mixed market conditions, with the Nasdaq-100 down 0.57% and the S&P 500 up 0.08%.
The surge is attributed to Allison's completion of the $2.7 billion acquisition of Dana's Off-Highway Drive & Motion Systems business, significantly enhancing its market position and creating a global enterprise with $5.5 billion in annual revenue. This strategic move is expected to drive both organic and inorganic growth, improving the company's financial performance across multiple sectors including infrastructure and energy.
This acquisition not only diversifies Allison's product portfolio but also positions the company for future growth in critical markets. The leadership restructuring and operational efficiencies anticipated from this merger are likely to enhance customer experience and market responsiveness.
Wall Street analysts forecast ALSN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALSN is 94.40 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
Wall Street analysts forecast ALSN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALSN is 94.40 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
3 Hold
1 Sell
Hold
Current: 111.560
Low
80.00
Averages
94.40
High
115.00
Current: 111.560
Low
80.00
Averages
94.40
High
115.00
Wells Fargo
Jerry Revich
Equal Weight
maintain
$85 -> $98
2026-01-23
Reason
Wells Fargo
Jerry Revich
Price Target
$85 -> $98
AI Analysis
2026-01-23
maintain
Equal Weight
Reason
Wells Fargo analyst Jerry Revich raised the firm's price target on Allison Transmission to $98 from $85 and keeps an Equal Weight rating on the shares. The firm reiterates its positive outlook for the Machinery, Industrials & Environmental Services space heading into earnings. Wells argues the Machinery supply-driven recovery is broadening to new equipment, non-residential lead indicators are accelerating, and cash conversion is improving.
Citi
Neutral
maintain
$100 -> $105
2025-12-19
Reason
Citi
Price Target
$100 -> $105
2025-12-19
maintain
Neutral
Reason
Citi raised the firm's price target on Allison Transmission to $105 from $100 and keeps a Neutral rating on the shares.
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Citi
Neutral
maintain
$90 -> $100
2025-12-11
Reason
Citi
Price Target
$90 -> $100
2025-12-11
maintain
Neutral
Reason
Citi raised the firm's price target on Allison Transmission to $100 from $90 and keeps a Neutral rating on the shares. The firm updated models in the machinery group as part of its 2026 outlook. Citi sees value in the space and has the most conviction in construction and mining growth entering next year. The agriculture and truck markets could remain challenged in the near-term, the analyst tells investors in a research note.
Raymond James
Outperform -> Strong Buy
upgrade
$105 -> $110
2025-12-08
Reason
Raymond James
Price Target
$105 -> $110
2025-12-08
upgrade
Outperform -> Strong Buy
Reason
Raymond James upgraded Allison Transmission (ALSN) to Strong Buy from Outperform with a price target of $110, up from $105. The anticipated Dana (DAN) off-highway acquisition marks a rare large-scale move for Allison and will create a more balanced mix between on- and off-highway revenue, the analyst tells investors in a research note. Dana's $2.5B scale and global manufacturing footprint give it strong advantages in supplying OEMs across multiple regions and technologies, the firm says.
About ALSN
Allison Transmission Holdings, Inc. is a designer and manufacturer of propulsion solutions for commercial and defense vehicles. The Company is also a manufacturer of medium-and heavy-duty fully automatic transmissions. Its products are used in a variety of applications, including on-highway trucks, including distribution, refuse, construction, fire and emergency; buses, including school, transit and coach; motorhomes, off-highway vehicles, and equipment, including energy, mining and construction applications; and defense vehicles, including tactical wheeled and tracked. The Company operates in approximately 150 countries. The Company has manufacturing facilities in the United States, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. The Company also has approximately 1,600 independent distributor and dealer locations worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
