American Axle upgraded to Buy from Neutral at UBS

UBS upgraded American Axle (AXL) to Buy from Neutral with a price target of $7, up from $4.50. UBS sees a longer tail for core American Axle programs such as GM’s (GM) full-size truck and SUV platform amid a relaxed US emissions regulatory environment, and tells investors in a research note that GM adding U.S. capacity is a net positive for American Axle that could boost outer year earnings power and is not yet in consensus numbers. At current levels, the proposed transaction with Dowlais could potentially create long-term value, UBS argues.