J.P. Morgan Cautious on Allison, Points to Macro Drags and Delayed Upside

Allison Transmission Holdings, Inc. (NYSE:ALSN) is one of the most profitable manufacturing stocks to buy now.

On October 14, 2025, analyst Tami Zakaria at J.P. Morgan Chase & Co. maintained a Neutral rating on Allison Transmission but trimmed the 12‑month price target from $95 to $90.

The rationale reflects broader industrial caution: the machinery/waste‑services segment tends to lag following the first rate cut by the Federal Reserve, and renewed tariffs on Chinese goods may dent the company’s Q4 performance. J.P. Morgan also shifted its target horizon from December 2025 to December 2026, signaling a belief that meaningful upside may come only with time.

For investors, the message is clear: Allison isn’t broken, but it’s not a breakout bet either. The Neutral rating paired with a lowered target suggests limited near‑term upside unless macro conditions improve. As the maker of heavy‑duty transmissions serving buses, trucks and hybrid systems, Allison remains profitable, but its fortunes are tightly tied to global truck orders, industrial capex and trade policy swings.

Allison Transmission Holdings, Inc. (NYSE:ALSN) develops fully automatic transmissions for medium‑ and heavy‑duty commercial vehicles, offering fuel and operator efficiency advantages and commanding leading share across its core markets.

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Disclosure: None.