Allison Transmission Holdings Inc
ALSN: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $52.00 | Yhskkv | Xbvyxnqtz |
Solid Demand Leads Us to Believe 2024 Will Be a Good Year for Allison
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Business Strategy and Outlook
We believe Allison will continue to be the top supplier of truck transmissions, despite increasing regulation of emissions by government authorities. The company dominates the medium-duty market, commanding approximately 80% market share in some verticals (school buses, Class 6 to 7 trucks, and Class 8 straight trucks). Allison's strong brand is underpinned by its high-performing and extremely durable transmissions. This has led to the company benefiting from pricing power.