UPDATE: Jefferies Raises PT on American Axle to $10

Jefferies reiterates its Underperform rating on American Axle (NYSE: AXL) and raises its price target by $1 to $10 as share price increased following a strong 4Q11 EPS.

Jefferies notes, "AXL traded up 2.8% in a strong tape after posting 4Q EPS roughly 8% above consensus (inline with JEFe) on strong margins. AXL shares have powered higher since our downgrade, which we attribute to a continued market rally out of newsflow around the Fed and unemployment. Our call remains to trim positions in last year's winners and redeploy proceeds into last year's laggards."

AXL closed at $12.68 a share on Friday.