Bank of America has revised its price target for American Axle (AXL, Financial), reducing it from $5.50 to $4.50 while maintaining an Underperform rating. This adjustment comes despite anticipated improvements in production volumes and sales for the first quarter, which are expected to surpass earlier predictions and lead to better-than-expected results.
The analyst notes the persistent uncertainty surrounding tariffs as a significant concern, describing the situation as highly unpredictable with ongoing discussions that are far from resolution. This uncertainty has prompted a reduction in valuation multiples by up to 1.0x across multiple sectors, reflecting the belief that companies might need to withdraw or pause their financial guidance as a precautionary measure.
