American Axle upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded American Axle (AXL) to Outperform from Sector Perform with a price target of $8, up from $6. The firm expects vehicle production forecasts for North America to move higher due to stronger than expected sales demand. RBC also views American Axle’s Dowlais deal as both financially and strategically attractive. The company retains a strong U.S. position, which is important given current strength in the market, the analyst tells investors in a research note. RBC sees American Axle’s multiple re-rating higher.