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Allison Transmission reports Q2 EPS 63c, consensus 47c
Reports Q2 revenue $580M, consensus $511.77M.
Piper 'growing more confident' in Underweight on Allison Transmission
Piper Jaffray analyst Alexander Potter says he's "growing more confident" in his Underweight rating on Allison Transmission following commentary from electric truck suppliers. Allison has more electric vehicle disruption risk as its targeted on-highway markets will probably be the first to electrify, Potter tells investors in a research note. He believes over 70% of the company's revenue is subject electric vehicle disruption. The analyst keeps an Underweight rating on the shares with a $31 price target.
Piper analysis suggests Tesla can succeed in electric trucks
Piper Jaffray analyst Alexander Potter's analysis suggests Tesla's (TSLA) electric trucks could generate payback times of less than two years, based primarily on fuel and maintenance cost savings relative to diesel trucks. While unanswered questions remain, Tesla is likely to succeed in electric semi trucks given its battery cost advantage, Potter tells investors in a research note. He admits that it's easy to see why many investors met Tesla's truck announcement with skepticism. Relative to consumers, fleets constitute a "less forgiving market segment" given the strict return-on-investment adherence, Potter writes. The analyst has an Overweight rating on Tesla with a $368 price target. He believes that outside of Wabco (WBC), most truck stocks "seem ripe for disruption." The analyst has Underweight ratings on Allison Transmission (ALSN) and Meritor (MTOR) and Neutral ratings on Cummins (CMI), Paccar (PCAR) and Navistar (NAV).
Allison Transmission price target raised to $46 from $39 at Oppenheimer
Oppenheimer analyst Ian Zaffino raised his price target for Allison Transmission to $46 from $39 after the company reported better than expected Q1 owing to robust demand from North America service parts, offsetting softness from the North American On-Highway Market. The analyst reiterates an Outperform rating on the shares.
Allison Transmission should be sold into rally, says Piper Jaffray
Piper Jaffray analyst Alexander Potter recommends using today's post-earnings rally in shares of Allison Transmission as a selling opportunity. The strength in the quarter reflects a cyclical recovery in off-highway demand, Potter tells investors in a research note. He thinks the cycle represents Allison's "last hurrah" and expects electric vehicle penetration to begin pressuring revenue in the coming years. Potter keeps an Underweight rating on the shares with a $30 price target.
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