Piper Jaffray analyst Alexander Potter recommends using the post-earnings rally in shares of Allison Transmission as a selling opportunity. The shares in after-hours last night traded up 7%, or $2.68, to $40.48. Allison's "strong" results stemmed from renewed interest in oil and fracking, as well as cyclical demand for truck and bus transmissions, Potter tells investors in a research note. He continues to believe, however, that electric powertrains "will soon disrupt these markets permanently." The analyst has an Underweight rating on the shares with a $31 price target.

"We are reaffirming our full year 2024 guidance provided to the market on February 13. Allison expects 2024 Net Sales in the range of $3,050 to $3,150 million, Net Income in the range of $635 to $685 million, Adjusted EBITDA in the range of $1,070 to $1,130 million, Net Cash Provided by Operating Activities in the range of $700 to $760 million, Capital Expenditures in the range of $125 to $135 million, and Adjusted Free Cash Flow in the range of $575 to $625 million."