Allison Transmission Holdings Inc (ALSN) witnessed a pre-market plunge of 8.04% on Wednesday, with shares trading sharply lower following the company's latest earnings report and analyst downgrades.
The leading manufacturer of commercial-duty automatic transmissions reported its fourth-quarter 2024 results on Tuesday, which included a record annual revenue of $3.2 billion. However, the company's outlook for 2025 raised some concerns among analysts.
While Allison Transmission projected net sales in the range of $3.2 billion to $3.3 billion for 2025, representing another record year, several analysts lowered their price targets on the stock. According to the 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.
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