VLEEY - American Axle Outperforms On Costs But Long-Term Revenue Leverage Is Still Debatable
It’s likely true that internal combustion engines will be with us for a quite a while, and particularly with respect to pick-ups, but I still believe exposure to electrification is important and American Axle & Manufacturing’s (AXL) (“American Axle”) relatively weak positioning here, not to mention its high leverage and dependence on the U.S. market, have been negatives in my view of the stock’s potential.
The shares are down about 20% since my last update, underperforming names I’ve preferred like BorgWarner (BWA), Dana (DAN), and Valeo (