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UBS raised its price target on Dana Holding (NYSE:DAN) to $22.00 from $20.00 on Friday, while maintaining its Buy rating on the automotive parts supplier. The stock, currently trading at $17.18, has shown remarkable momentum with a 52.36% gain year-to-date and is approaching its 52-week high of $18.03.
The investment firm cited a shifting focus toward margin improvement drivers and potential re-rating following a major deal announcement. UBS increased its 2026 and beyond earnings estimates, seeing a path to 10-10.5% margins for Dana’s remaining operations. InvestingPro data shows five analysts have recently revised their earnings estimates upward, with analyst targets ranging from $15 to $25.
The firm’s 2026 proforma EBITDA forecast for Dana’s remaining operations now stands at $770 million, representing an 11% increase from its previous estimate.
UBS noted the potential for Dana’s stock to experience a re-rating based on the company’s announced capital return program through 2027 and additional margin upside potential.
These improvements are expected to lead to an enhanced free cash flow profile and more consistent capital returns beyond what Dana has already announced, according to UBS’s analysis.
In other recent news, Dana Inc reported its first-quarter 2025 earnings, revealing a mixed financial performance. The company posted earnings per share (EPS) of $0.13, falling short of the $0.16 forecast. However, Dana exceeded revenue expectations with $2.4 billion, surpassing the anticipated $2.3 billion. RBC Capital Markets upgraded Dana’s stock rating to Outperform and increased the price target to $20.00, reflecting confidence in the company’s potential Off-Highway (OH) deal and robust core business fundamentals. BNP Paribas (OTC:BNPQY) Exane also reiterated an Outperform rating, highlighting Dana’s $1 billion capital returns authorization and cost-saving initiatives. The anticipated OH sale is expected to unlock value and provide additional capital returns to shareholders. Dana aims to eliminate all $35-$40 million in Off-Highway stranded costs by the end of 2026. These developments indicate a strong financial position and confidence in the company’s ongoing strategy.
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