JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - UBS upgraded American Axle & Manufacturing Holdings (NYSE:AXL) from Neutral to Buy on Monday, while raising its price target to $7.00 from $4.50.
The upgrade is based on several factors, including expectations for a longer lifespan of core American Axle programs such as General Motors (NYSE:GM)’ full-size truck/SUV platform (T1XX), supported by a relaxed U.S. emissions regulatory environment.
UBS noted that GM’s plans to add U.S. manufacturing capacity represent a positive development for American Axle that could enhance future earnings potential beyond current consensus estimates.
The firm also highlighted the potential long-term value creation from American Axle’s proposed transaction with UK-listed automotive supplier Dowlais, which is pending shareholder approval.
American Axle shareholders will vote on the Dowlais transaction on July 15, followed by Dowlais shareholders voting on July 22, with UBS suggesting that transaction closure could serve as a catalyst for the stock, which has underperformed supplier peers over the past quarter.
In other recent news, American Axle & Manufacturing Holdings Inc. reported its first-quarter 2025 earnings, meeting analysts’ expectations with an earnings per share (EPS) of $0.09. The company exceeded revenue forecasts by reporting $1.41 billion, surpassing the anticipated $1.39 billion. In a strategic move, American Axle revealed plans to increase its authorized shares to facilitate the acquisition of Dowlais Group plc, a UK-based company, as part of a business combination involving both cash and stock considerations. The company has also received approval from its shareholders for an amended incentive plan, aiming to retain and motivate its workforce. Additionally, the election of directors Herbert K. Parker and Aleksandra A. Miziolek was confirmed during the annual meeting. The appointment of Deloitte & Touche LLP as the independent auditor for the fiscal year 2025 was ratified. These developments reflect American Axle’s ongoing efforts to strengthen its governance and operational strategies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.