Allison Transmission Holdings Inc (ALSN) experienced a sharp pre-market plunge of 15.75% on Wednesday, February 12, 2025, after the company's latest earnings report and 2025 outlook raised concerns among analysts, prompting multiple price target cuts and downgrades.
While the leading manufacturer of commercial-duty automatic transmissions reported record annual revenue of $3.2 billion for 2024, its guidance for 2025 was viewed as disappointing by Wall Street. Despite projecting net sales in the range of $3.2 billion to $3.3 billion, representing another record year, several analysts lowered their price targets on ALSN stock.
According to reports, firms such as BofA Global Research, Citigroup, and JPMorgan cut their price targets, citing factors like margin pressure and growth concerns in certain markets. The company's outlook for 2025 appears to have raised questions about its future profitability and growth prospects, leading to the sharp selloff in the stock.
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