J.P. Morgan Overweight On American Axle (AXL)

J.P. Morgan Chase & Co. is Overweight on shares of American Axle & Manufact. Holdings, Inc. AXL. In a note sent to clients, J.P. Morgan writes, "We continue to believe AXL share can move into the high-teens on a 12-24 month view. This out of favor high-beta name should benefit from a rebounding US pickup truck segment (whose strength could accelerate in H2.2011 given recent US accelerated deprecation tax legislation) and the potential to unlock $2 of value from bringing 300 workers at its Detroit facility to market-competitive wages. In addition, AXL stands out as one of the sectors true remaining de-leveraging plays (i.e., we are not sure supplier stocks that are cash generative with a sizable net cash position are paid dollar-for-dollar for the company's cash generation absent visible signs of accretive cash deployment such as buyback or acquisitions; we do think this largely occurs in stocks of net debt holding suppliers like AXL, TEN, GT)." Shares of AXL closed at $13.99 on Friday.