RBC Capital has revised its price target for American Axle & Manufacturing Holdings Inc. (AXL, Financial), lowering it from $6 to $5 while maintaining a Sector Perform rating on the stock. This adjustment comes as part of RBC's broader analysis of the forthcoming first quarter results for the automotive sector.
The firm anticipates that the quarter may have seen a boost from increased purchasing activity in March, a response to impending tariff implementations. However, RBC does not expect significant discussions regarding tariff impacts during the upcoming earnings announcements. Instead, guidance across the sector might be retracted or reduced, although current market consensus already aligns with the lower end of expected ranges.
Amidst ongoing macroeconomic uncertainties, RBC is leaning towards original equipment manufacturers (OEMs) rather than their suppliers. Nevertheless, the firm noted that investors could potentially see substantial gains by investing across the entire automotive group, should there be no tariff impositions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for American Axle & Mfg Holdings Inc (AXL, Financial) is $5.79 with a high estimate of $8.00 and a low estimate of $3.50. The average target implies an upside of 85.44% from the current price of $3.12. More detailed estimate data can be found on the American Axle & Mfg Holdings Inc (AXL) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, American Axle & Mfg Holdings Inc's (AXL, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for American Axle & Mfg Holdings Inc (AXL, Financial) in one year is $7.37, suggesting a upside of 136.22% from the current price of $3.12. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the American Axle & Mfg Holdings Inc (AXL) Summary page.
