Exane upgrades Dana to Outperform on Off-Highway segment sale

Exane BNP Paribas analyst James Picariello upgraded Dana (DAN) to Outperform from Neutral with a price target of $16, up from $9. The company’s intention to sell its higher margin Off-Highway segment “breathes entirely new life” in its ability to reset its balance sheet and focus strictly on profit and free cash flow maximization the analyst tells investors in a research note. Exane believes the sale combined with a strategic deemphasis of the electric vehicle business can “unlock substantial” free cash flow upside.