Allison Transmission price target raised to $56 from $50 at BofA

BofA raised the firm’s price target on Allison Transmission to $56 from $50 and keeps an Underperform rating on the shares after Q4 results came in “well ahead” of consensus expectations, driven by strong North American on-highway demand. Allison also provided an initial 2024 outlook that was 2% above consensus expectations, notes the analyst, who raised the firm’s 2024 and 2025 estimates by 3% and 5%, respectively, on the updated outlook, but still has concerns about potential cycle-over-cycle margin degradation.