Barclays on American Axle (AXL): Sees Long-Term Benefits, But Prefers BWA, DAN, TEN & DLPH

Barclays maintains an 'Equalweight' on American Axle (NYSE: AXL) price target of $13.00.

Analyst, Brian A. Johnson, said, "Long term, we expect AXL to benefit from continued operational efficiency, increased revenue diversification, and an improved cash flow profile. However, in the near/mid term, the bull thesis hinges on the success of K2XX."

"...In recent months, AXL has been popular with investors due to AXL's lack of European exposure. However, with expectations recently reset at BorgWarner (NYSE: BWA), Dana Corp (NYSE: DAN), Tenneco (NYSE: TEN) (and likely Delphi (Nasdaq: DLPH) after it reports), we believe they offer a better risk/reward profile than AXL, especially if the market breaks into a Europe "risk-on" trade."

Johnson lowers FY12 EPS estimate from $1.98 to $1.95 and FY13 from $2.52 to $2.46.

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 $10.64 yesterday.

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