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Dana upgraded to Equal Weight from Underweight at Wells Fargo
The Fly

Dana upgraded to Equal Weight from Underweight at Wells Fargo

Wells Fargo analyst Colin Langan upgraded Dana (DAN) to Equal Weight from Underweight with a price target of $16, up from $10. The firm remains skeptical Dana will achieve its new $300M cost-out target by 2026. Wells estimates this would be a surprisingly high 50% of RemainCo SG&A and engineering cost. Also, the organic guide of -2.5% seems optimistic given market and Super Duty headwinds. That said, Off-Highway valuations are wide, but management noted strategic interest which could imply higher pricing given synergies. Ahead of the Off-Highway sales, the firm sees the near-term risk-reward now skewed more positive.

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