American Axle (AXL) Numbers Axed at Deutsche Bank But 'Buy' Maintained

Deutsche Bank analyst Rod Lache lowered estimates and his price target on American Axle (NYSE: AXL) from $27 to $22 but maintained a Buy rating.

Lache said, "While we continue to view AXL as having significant growth prospects based on the company’s $900 MM backlog, we are taking a somewhat more conservative view on GM’s K2XX truck platform (which still accounts for approx. 48% of AXL’s revenue). We are adjusting our 2014 and 2015 estimates to $2.35 and $2.65 from $2.45 and $3.00. Our 2014 and 2015 free cash flow estimates are also revised to $96MM and $167MM. We are adjusting our target to $22 from $27, which calibrates to derived target EV/EBITDAP multiple of 6.0x, and a P/E of 8.5x."

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 $17.93 yesterday.

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