Fidelity Dividend Growth Fund on Allison Transmission Holdings, Inc.
Thesis
Allison Transmission is a meaningful overweight benefiting from accelerating industrial activity. Fidelity sees federal infrastructure spending and onshoring as supportive demand drivers for the company's medium- and heavy-duty vehicle transmission business. The acquisition of Dana's Off-Highway Drive & Motion Systems business adds another potential source of growth and strategic value.
“We like the prospects for this acquisition.”