Allison Transmission price target raised to $90 from $67 at Oppenheimer

Oppenheimer raised the firm’s price target on Allison Transmission to $90 from $67 and keeps an Outperform rating on the shares. Demand in Defense, construction, and International mining and energy remain robust, and should offset supply constraints in North America On-Highway, the firm says. Later this year, the company will begin to renegotiate 60% of its North America On-Highway contracts; Allison has been honoring pre-COVID contracts. Oppenheimer expects at least 500bps of price for this cohort starting in 2025, as Allison’s overall prices increased about 1000bps from 2022-2023.