UPDATE: Citigroup Raises Target to $15 on American Axle

Citigroup reiterates its Buy rating on American Axle (NYSE: AXL) and raises its price target to $15 from $13 a share as the company's solid performance maintains the investment thesis intact.

Citigroup notes, "Our thesis remains unchanged from our Nov-11 initiation: (1) A strong backlog and SAAR recovery should drive double-digit top-line growth through 2015 (with limited exposure to Europe); (2) Consistent margin performance should preserve Axle's above-average profitability; (3) Exposure to the 2013-14 redesign of GM's K2XX truck/ platform; (4) Likely de-leveraging via pension contributions and debt reduction; and (5) Improving, albeit still negative, sentiment (and high short interest)."

AXL closed at $12.68 a share on Friday.