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Fly News Breaks for November 21, 2019
Nov 21, 2019 | 07:37 EDT
Raymond James analyst Felix Boeschen initiated coverage of Allison Transmission with an Outperform rating and $50 price target. In a research note to investors, Boeschen says he suspects Allison's runway for further revenue growth anchored by its push into the Class 8 metro space, Class 4/5 medium duty penetration, and long-term opportunity for global expansion remains largely underappreciated by the Street. While he is cognizant of the long-term risk that electrification could pose to Allison Transmission's legacy on-highway business, with the stock trading at ~8x his 2021 FCF/share estimate, toward the very low end of its 7-16x five- year range, Boeschen says he sees a largely favorable risk/reward skew.