In a report released on November 7, Joseph Spak from UBS maintained a Buy rating on American Axle, with a price target of $8.50.
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Joseph Spak has given his Buy rating due to a combination of factors that suggest a positive outlook for American Axle. The company is expected to benefit from the extended lifecycle of its core programs, particularly with GM’s full-size truck and SUV platform, as emission regulations become more lenient. Additionally, American Axle is poised to gain from increased US on-shoring opportunities, including potential expansions by GM, which could positively impact earnings starting in late 2026 or 2027.
Furthermore, the anticipated closure of the Dowlais deal in the first quarter of 2026 is seen as a long-term value creator, with potential synergies and cash generation contributing to equity growth. American Axle’s recent financial performance also supports the Buy rating, as the company reported a solid third-quarter beat with improved margins and raised its 2025 EBITDA guidance. Despite some tariff-related costs, the company’s guidance suggests strong free cash flow, reinforcing the positive investment thesis.