Allison Transmission (ALSN): Reassessing Valuation After a Strong Multi‑Month Share Price Rally

Allison Transmission Holdings (ALSN) has quietly put up a strong run lately, with the stock up about 25% over the past month and 13% in the past 3 months, drawing fresh investor attention.

See our latest analysis for Allison Transmission Holdings.

That recent surge sits against a more mixed backdrop, with the share price at $99.37 and a strong 3 year total shareholder return of about 146 percent. This suggests momentum is rebuilding after earlier softness.

If Allison’s move has you rethinking opportunities in industrials and mobility, this could be a good moment to discover auto manufacturers for more ideas on where capital might work harder.

Solid revenue and profit growth, a hefty three year return, and a small gap to analyst targets hint at more upside ahead. With the stock near highs and expectations rising, is there still a buying opportunity, or is future growth already priced in?

Most Popular Narrative: 80% Undervalued

With the most followed narrative placing fair value around $100.20 against a $99.37 close, the gap looks small, but its logic leans on powerful long term drivers.

Allison's increasing penetration into electrified and alternative fuel powertrain segments evidenced by orders for its eGen Flex hybrid bus systems and eGen Force electrified defense transmissions positions the company to capture growing demand driven by tightening emissions regulations and the global focus on fleet efficiency, supporting long term revenue streams from new and differentiated products.

Read the complete narrative.

If you want to see how this shift into electrified drivetrains translates into long term earnings power, margins, and valuation multiples, the narrative spells out a detailed roadmap that might surprise you.

Result: Fair Value of $100.2 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, accelerating fully electric drivetrains and a prolonged North American truck slowdown could undercut assumptions on Allison’s hybrid transition and volume-driven growth.

Find out about the key risks to this Allison Transmission Holdings narrative.

Build Your Own Allison Transmission Holdings Narrative

If you see the story differently or want to dig into the numbers yourself, you can craft a custom narrative in just a few minutes: Do it your way.

A great starting point for your Allison Transmission Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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