AXL: Dowlais Deal Will Shape Path As ICE Shift Risks Remain

Analysts have raised the price target for American Axle & Manufacturing Holdings from $6 to $8. They cite improving North American vehicle production forecasts and the strategic value of the Dowlais acquisition as key drivers for the upgrade.

Analysts have raised their price target for American Axle & Manufacturing Holdings from $6.40 to $6.84 per share. This increase is due to improved vehicle production forecasts, a strategically significant acquisition, and expectations for higher valuation multiples.

Despite secular headwinds from the shift away from internal combustion engines, analysts view the Dowlais acquisition and robust North American vehicle production as positive catalysts for American Axle’s long-term value, keeping the consensus price target unchanged at $6.41. Analyst Commentary Bullish analysts see the Dowlais acquisition as both financially and strategically attractive, viewing it as a transformational deal that can drive long-term value.

AnalystConsensusTarget has decreased revenue growth from -1.2% to -1.3%.

AnalystConsensusTarget has decreased revenue growth from -1.0% to -1.2% and decreased profit margin from 0.9% to 0.8%.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget has decreased revenue growth from -3.1% to -1.0%, decreased profit margin from 1.1% to 0.9% and decreased future PE multiple from 20.7x to 18.3x.