- Morgan Stanley analyst Adam Jonas upgraded American Axle & Manufacturing Holdings Inc AXL to Overweight from Underweight with a price target of $16, up from $8, implying a 77% upside.
- While many other legacy OEMs and suppliers plough cash flow into EV projects that "will likely not generate their cost of capital," Jonas thinks American Axle is different and believes that the company will likely use the majority of its cash flow to de-lever the balance sheet.
- Jonas forecasts American Axle's levered free cash flow to be $1.5 billion through FY25, which he notes would be an amount equal to 150% of its market cap and enough to reduce about 60% of net debt.
- Price Action: AXL shares are trading higher by 4.63% at $9.03 on the last check Monday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.