Jefferies has commenced coverage of Dauch Corporation with a Buy recommendation and a price objective of $10.35, implying roughly a 45% increase from the prevailing share price of $7.12. The firm highlighted scale benefits from the recent consolidation that brought together American Axle & Manufacturing and Dowlais businesses.
The stock has shown notable short-term volatility. Shares declined by more than 15% over the last week, despite recording a roughly 27% advance across the prior six-month period.
Jefferies' initiation follows the completion of a merger that unified GKN Automotive and GKN Powder Metallurgy operations under the Dauch umbrella. The combined enterprise generates $11 billion in revenue on a pro forma basis, while InvestingPro data reports $5.84 billion in revenue for the company's last twelve months. Jefferies noted the full financial impact of the transaction is still being realized.
Within the North American supplier landscape, Dauch is identified as the sixth largest Tier 1 automotive supplier. Jefferies pointed to the material scale advantages the merger delivers as a central reason for its positive view.
The investment bank had previously covered Dowlais prior to the latter's delisting and observed that Dowlais was unable to fully capture value as a standalone UK-listed business. Jefferies had earlier characterized the transaction as undervaluing Dowlais when it was negotiated.
Among diversified European-listed suppliers, Jefferies places Dauch second in its ranking of preferred names.
Corporate developments accompanying the strategic combination include Dauch's completion of the acquisition of Dowlais Group plc and its subsidiaries, GKN Automotive and GKN Powder Metallurgy. The merger was finalized after a court sanctioned the Scheme of Arrangement; it will take effect when the Court Order is delivered to the Registrar of Companies.
In parallel with the transaction, the company has formally rebranded from American Axle & Manufacturing Holdings, Inc. to Dauch Corporation. The name change was effected via an amendment to the company’s Certificate of Incorporation. Existing stock certificates will remain valid following the rebranding.
Shares will commence trading under the new ticker symbol "NYSE:DCH" beginning February 5, 2026.
Other broker-dealer activity has followed the corporate moves. BWS Financial has opened coverage with a Buy rating and a $17.00 price target. Separately, RBC Capital increased its price target on the company to $12.00 and maintained an Outperform rating.
Market and sector context
The coverage actions and price-target revisions arrive as Dauch transitions through integration, rebranding, and relisting steps. Analysts’ views emphasize the expected benefits from the newly combined GKN assets and the enlarged revenue base, while public market performance has shown both multi-month gains and recent short-term weakness.
What to watch
- The pace at which the full merger impact is reflected in reported results and revenue run-rate.
- Market reaction to the rebrand and the first trading days under the NYSE:DCH ticker.
- Analyst updates from brokerages that have already adjusted coverage in light of the transaction.