Stock Price & Analysis

Buy ALSN stock as it has entered oversold territory with an RSI of 29.3, indicating potential buying opportunities. The company's increased stock buyback program and dividend hike further suggest positive momentum.

The price prediction for ALSN stock in 2025 is expected to range between $105 and $115 per share. This forecast is based on the stock's recent oversold condition with an RSI of 29.3, indicating potential buying opportunities. Additionally, the company's $1 billion stock buyback increase and 8% dividend hike suggest strong financial confidence, likely driving the stock price upward.

The S1 support level for ALSN Stock is $93.64 ,The R1 resistant level for ALSN Stock is $98.92.

As of the end of day on 2025-03-19, the price of ALSN Stock was $98.19.

The target price for ALSN Stock according to analyst rating is 107.83, with the highest price target at 129.00 and the lowest at 74.00. Analysts have a Moderate Sell rating on ALSN Stock overall.

The market cap of ALSN is $8.3B.

Analysis and Insights

To determine if Allison Transmission Holdings Inc (ALSN) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

• P/E Ratio: ALSN's P/E ratio is approximately 11.74, which is lower than the industry average, suggesting it may be undervalued compared to peers.
• EV/EBITDA: The EV/EBITDA ratio of 8.98 indicates a reasonable valuation relative to earnings and debt.
• P/S Ratio: The P/S ratio of 2.38 shows the stock is moderately priced relative to revenue.
• P/B Ratio: The P/B ratio of 5.29 suggests a premium, indicating the market values the company's assets highly.

Financial Performance:

• Revenue and Net Income: Steady revenue growth with net income margins around 21%, reflecting strong profitability.
• Dividend Yield: A stable dividend yield of 1.16% with recent increases, signaling confidence in cash flows.

Technical Analysis:

• RSI: The RSI of 41.6 suggests the stock is moving out of oversold territory, indicating potential buying opportunities.
• Price Levels: Current price around $97.13, with support at $93.60 and resistance at $98.88.

Analyst Sentiment:

Analysts have mixed views, with some lowering price targets but maintaining a hold rating, citing margin pressures and volume risks.

Conclusion:

ALSN appears fairly valued with potential upside. While some metrics like P/B are high, others like P/E and EV/EBITDA are reasonable. The company's financial health and stable dividends are positives, but investors should monitor industry challenges.

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.

Allison Transmission Holdings Inc (ALSN) is expected to reach a stock price of $150-$200 by 2030, driven by its strong market position in commercial and defense vehicle propulsion solutions. The company's recent stock buyback program and dividend increases signal confidence in its financial health. With industry tailwinds and global expansion, ALSN is well-positioned for long-term growth.

ALSN has a total of 3700 employees.