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American Axle, BorgWarner higher after double-upgrades at Morgan Stanley

Published 03/22/2018, 10:13 AM
© Reuters.  American Axle, BorgWarner higher after double-upgrades at Morgan Stanley
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  • American Axle (AXL +3.7%) and BorgWarner (BWA +1.9%) jump to early gains after Morgan Stanley (NYSE:MS) awards two-notch upgrades of each to Overweight from Underweight with respective $21 and $61 price targets.
  • Stanley says the auto industry is going through an "unprecedented period of cyclical and secular change" and investors are currently skewed negative on U.S. autos and shared mobility stocks, but it sees "more road left for Auto 1.0" suppliers.
  • The firm thinks AXL shares have the potential to re-rate as free cash flow is used to delever and BWA may enjoy positive guidance revisions in the near term.
  • Now read: Stoneridge Incorporated, A Rock Solid Investment Part II


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