UPDATE: Susquehanna Financial Group Initiates Coverage On American Axle & Manufacturing On Very Risky Investment

In a report published Tuesday, Susquehanna Financial Group analyst Matthew Stover initiated coverage on

with a Neutral rating and $18.00 price target. In the report, Susquehanna Financial Group noted, “AXL managed to survive. No company in our universe came closer to the brink of bankruptcy during the recession of '08-'09 and was able to “gut” its way back to solvency. This speaks to the mettle of this company's management and its employees. The company recognized its shortcomings and has planted the seeds for future growth and diversification. Now it must be focused on harvesting cash flow. The balance sheet remains far too levered to endure another recession. Debt must be reduced to ensure the investments aren't for naught. Normally, we are very attracted to stories that call for the conversion of debt to equity. However, the volatility of the current market environment makes this a very risky investment. Just a bit too risky for our blood.” American Axle & Manufacturing Holdings, Inc. closed on Monday at $17.56.