Dana stock price target raised to $26 from $24 at RBC Capital

Published 02/09/2025, 15:04
Dana stock price target raised to $26 from $24 at RBC Capital

Investing.com - RBC Capital raised its price target on Dana Holding (NYSE:DAN) to $26.00 from $24.00 on Tuesday, while maintaining an Outperform rating on the stock. The automotive parts supplier, currently trading at $20.08 with a market capitalization of $2.6 billion, has shown remarkable momentum with an 84% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The firm cited expectations for higher 2026 EBITDA estimates and peer multiple as key factors behind the price target increase.

RBC Capital noted that U.S. auto production forecasts are trending higher due to strong U.S. retail sales performance.

The firm also identified potential for additional cost efficiencies beyond the $310 million in cost savings previously outlined in connection with the OH deal.

Dana Holding, an automotive parts supplier, continues to receive positive analyst sentiment as RBC maintains its Outperform rating alongside the higher price target.

In other recent news, Dana Inc reported its second-quarter 2025 earnings, showcasing a strong earnings per share (EPS) performance that exceeded expectations, even though its revenue did not meet projections. The earnings announcement has attracted attention from investors, as reflected in market movements. In another development, UBS has raised its price target for Dana to $25 from $23, maintaining a Buy rating. This adjustment follows the exclusion of Dana’s Off-Highway business, which is being sold to Allison Transmission, and results in a new 2025 EBITDA forecast of $573 million, aligning with Dana’s guidance. Additionally, CFRA has upgraded Dana’s stock rating from Sell to Hold, increasing its price target to $16 from $10, citing a notable improvement in margins. Dana’s remaining business segments saw a 210 basis point year-over-year increase in margins to 7.5% in the second quarter, surpassing expectations. These developments highlight significant changes in Dana’s financial outlook and strategic positioning.

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