Deutsche Bank Upgrades American Axle (AXL) to Buy; Accelerating Growth, Exposure to N.A.

Deutsche Bank upgraded American Axle (NYSE: AXL) from Hold to Buy with a price target of $16.50.

Deutsche analyst said, "We have begun to see AXL’s focused exposure to North America as a positive in the current macro environment. And believe that investors could soon begin to look ahead to AXL’s strong backlog ($1.1bn in 2012-2014 on 2011 revenue of $2.6bn) and potential positives from the early-2013 launch of GM’s (NYSE: GM) new trucks."

"Valuation is compelling (6.2x / 4.0x fully-taxed 2012 / 2013 EPS). And we also expect a 1.2x reduction in net debt / EBITDA over the next three years (~$400MM), which should accrue directly to the market cap (~$700MM currently)."

For an analyst ratings summary and ratings history on American Axle click here. For more ratings news on American Axle click here.

Shares of American Axle closed at $8.97 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Deutsche Bank Upgrades Huizhou Desay Sv Automotive Co (002920:CH) to Hold
• Rocket Lab replaces ATM equity program, eyes Iridium acquisition funding
• New Street Research Upgrades Micron Technology (MU) to Buy