UBS Upgrades American Axle & Manufacturing Holdings (AXL) Stock to Buy

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is one of the Most Undervalued Stocks Under $10 to Buy Now. UBS upgraded the company’s stock to “Buy” from “Neutral” with a price objective of $7, up from the prior target of $4.50, as reported by The Fly. The upgrade comes off the back of several factors, including anticipations for the longer lifespan of core American Axle programs like General Motors’ full-size truck/SUV platform, aided by the relaxed U.S. emissions regulatory environment.

Furthermore, the firm noted that GM’s plans to add US manufacturing capacity reflect a positive development for American Axle & Manufacturing Holdings, Inc. (NYSE:AXL), which can improve future earnings potential beyond the current consensus estimates. American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) delivered positive YoY operating cash flow performance, thanks to a combination of cost control and productivity. The net cash provided by operating activities for Q1 2025 came in at $55.9 million compared to $17.8 million for Q1 2024.

aThingz, which is a new generation Supply Chain as a Service (SCaaS) managed solution provider, announced that American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) selected its DAKSA AI Platform to help the digital transformation strategy.

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is engaged in designing, engineering, and manufacturing driveline and metal forming technologies supporting electric, hybrid, and internal combustion vehicles.

While we acknowledge the potential of AXL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.