Dana stock price target raised to $25 from $23 at UBS on capital return story

Published 13/08/2025, 11:08
Dana stock price target raised to $25 from $23 at UBS on capital return story

Investing.com - UBS raised its price target on Dana Holding (NYSE:DAN) to $25.00 from $23.00 on Wednesday, while maintaining a Buy rating on the stock. The new target sits within the broader analyst range of $18-$26, with the stock currently trading at $18.67, near its 52-week high of $18.71. According to InvestingPro data, Dana has delivered impressive returns, with a 64.61% gain year-to-date.

The firm updated its model to exclude the Off-Highway business being sold to Allison Transmission, resulting in a new 2025 EBITDA forecast of $573 million, which falls within Dana’s guidance range of $540-$610 million. For context, Dana’s last twelve months EBITDA stands at $791 million. InvestingPro subscribers have access to 10+ additional exclusive insights about Dana’s financial health and valuation metrics.

UBS cited Dana’s strong capital return story as a key factor in its positive outlook, noting the company plans approximately $125 million in share repurchases in the third quarter of 2025, followed by another roughly $200 million capital return in the fourth quarter.

The firm also highlighted Dana’s authorization of up to $1 billion in capital returns through 2027, representing an incremental $400 million after 2025, with management believing free cash flow should be directed toward repurchases rather than other forms of returns given the current stock price.

UBS further pointed to Dana’s credible path to achieving over 10% EBITDA margins in 2026 and noted that commercial vehicle outlook concerns have been addressed in the company’s updated guidance.

In other recent news, Dana Inc reported its second-quarter earnings for 2025, showcasing a notable earnings per share (EPS) beat. However, the company’s revenue did not meet expectations, which was a point of interest for investors. Despite the revenue shortfall, Dana Inc’s performance led to a significant surge in pre-market trading, indicating positive investor sentiment. Additionally, CFRA upgraded Dana Holding’s stock rating from Sell to Hold, citing substantial margin improvements in the company’s business segments. The margin increased by 210 basis points year-over-year to 7.5% in the second quarter, surpassing expectations. CFRA also raised its price target for Dana Holding from $10.00 to $16.00. These developments highlight the company’s recent financial performance and analyst perspectives.

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