How are energy investors positioned?
Investing.com - RBC Capital downgraded Dowlais Group PLC (LON:DWL) from Outperform to Sector Perform while raising its price target to GBP0.77 from GBP0.70.
The rating change comes as Dowlais shares trade at only approximately 1-2% discount to the implied American Axle (NYSE:AXL) bid price, according to RBC Capital.
The firm’s new price target of GBP0.77 aligns with the current implied bid price from American Axle, reflecting the narrowing gap between market value and acquisition value.
RBC Capital maintains its view that the American Axle offer potentially undervalues Dowlais, but acknowledges the deal’s progression over the past six months.
With both management teams still expecting completion in the fourth quarter, RBC Capital now sees the acquisition as the most likely outcome for Dowlais.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.