$ALSN

ALSN Upgraded by Citigroup -- Price Target Raised to $135

Citigroup upgraded Allison Transmission (ALSN) to Buy with a $135 price target. The stock is trading at $109.86, 29.8% below its GF Value™ of $156.46, indicating potential undervaluation. ALSN has a GF Score™ of 95/100, strong profitability, and growth but moderate financial strength. Analysts cite optimism in the automotive sector for the upgrade.

Original reporting
Published Oct 12, 2026, 1:35 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Oct 12, 2026, 2:28 PM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
AlphAI market briefFinancial news
Primary signal
$ALSN
Bullish
high confidence
Mentioned
$ALSN
Relevance
7/10
AlphAI data visualization · based on gurufocus.com
Decision brief

The 30-second read

$ALSNBullishMed
01

Why it matters

The new Buy rating and $135 target suggest a re‑rating of the stock's valuation, potentially prompting short‑term buying.

02

Market read

Analyst upgrade with a specific price target provides fresh actionable insight for traders.

03

What to watch

Recent insider selling and mixed guru activity could temper upside.

Relevance 7/10Novelty 7/10Timing: pre‑market today

Background

Allison Transmission designs automatic transmissions for heavy‑duty vehicles; the upgrade follows a period of mixed analyst sentiment.

Company-level read

Ticker impact

$ALSNBullishHigh confidence
Context

Citigroup upgraded Allison Transmission (ALSN) to Buy and raised the price target to $135.

Expected impact

likely upside as investors price in the higher target

Evidence & confidence

Analyst upgrade with a concrete price target typically prompts demand, especially after a neutral rating.

Market effects

Positive sentiment may lift other transmission and commercial vehicle component stocks.

U.S. industrial sector could see modest gains.

Limited to U.S. equities; no broader macro effect.

Counterpoint

The upgrade may be premature given the company's modest financial strength rating (4/10).

Key entities

  • Allison Transmission Holdings Inc.

    Manufacturer of automatic transmissions for commercial vehicles.

  • Citigroup

    Investment bank that issued the upgrade.

Related articles

$ALSNMed

Why is Allison Transmission stock gaining today?

Allison Transmission (ALSN) stock rose 1.0% in pre-market trading after Citi upgraded it to Buy with a $135 price target. The company's stock had declined 13.5% in the prior month. Other analysts, including Zacks and Freedom Broker, have also recently upgraded ALSN. The broader market showed little movement, with the S&P 500, Dow Jones, and Nasdaq each changing less than 0.1%. Allison raised its 2026 revenue guidance to $5.8B–$6.0B following a record Q2 performance.

$ALSNMed

How Investors May Respond To Allison Transmission (ALSN) Raising 2026 Guidance On Off-Highway Synergies

Allison Transmission (ALSN) reported Q2 2026 earnings and revenue above consensus, driven by defense demand and its Off-Highway business. The company raised its 2026 sales and adjusted EBITDA guidance, aiming for $120M in annual cost savings by 2029. Investors are assessing the impact of these updates on the company's investment narrative and risks, particularly around electrification and integration challenges.

$ALSNMedAI 8/10

Allison Transmission’s Q2 Earnings Call: Our Top 5 Analyst Questions

Allison Transmission (ALSN) reported Q2 revenue of $1.57B versus $1.52B estimates and adjusted EPS of $2.73 versus $2.59, with adjusted EBITDA of $404M versus $392.5M. The company lifted full-year revenue guidance to $5.9B and EBITDA guidance to $1.52B (midpoint). Management cited Off-Highway integration, defense contract wins, and pricing actions to offset costs.

$ALSNMedAI 8/10

Allison Transmission Q2 Earnings Call Highlights

Allison Transmission (NYSE:ALSN) reported Q2 updates on pricing, demand and guidance. COO Fred Bohley said North American on-highway revenue rose 15% sequentially and off-highway Q2 revenue was $706 million. The company expects 2026 net sales $5.8B-$6.0B and adjusted EBITDA $1.465B-$1.575B, plus defense contract wins.