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Dana Holding (NYSE:DAN) stock rose Thursday following BNP Paribas (OTC:BNPQY) Exane’s reiteration of an outperform rating and $19.00 price target on the company. The stock has shown remarkable momentum, gaining over 43% in the past six months and currently trading near its 52-week high of $17.88. According to InvestingPro analysis, Dana appears fairly valued based on its comprehensive Fair Value model.
The firm highlighted the Off-highway sale as a key catalyst for greater investor appreciation of Dana’s shareholder returns capacity and improved capital structure. BNP Paribas Exane noted that the transaction’s details aligned with their expectations.
Dana’s pro-forma shareholder returns potential appears attractive with approximately 1x net leverage targeted and significant momentum from its over $300 million restructuring program. The company expects to realize more than $225 million in cost savings this year.
Dana plans to eliminate all $35-$40 million in Off-highway stranded costs by year-end 2026. The company has announced a $1 billion capital returns authorization, which BNP Paribas Exane describes as their "coverage-leading 46% of market cap" capacity.
If Dana delivers on its targeted free cash flow of 4% of sales, BNP Paribas Exane anticipates significant upside to the announced capital returns authorization, which includes the common dividend.
In other recent news, Dana Inc reported its first-quarter 2025 earnings with mixed results. The company posted earnings per share of $0.13, which fell short of the forecasted $0.16. However, Dana exceeded revenue expectations, reporting $2.4 billion compared to the anticipated $2.3 billion. Analysts from RBC Capital Markets upgraded Dana’s stock rating to Outperform, raising the price target from $14.00 to $20.00, reflecting confidence in Dana’s strategic position and potential upcoming deals. RBC Capital Markets expressed optimism about Dana’s Off-Highway division sale, expected to be finalized soon, which could enhance shareholder value.
Additionally, Dana maintained its full-year guidance, projecting sales above the midpoint of its range, with an adjusted EBITDA target of $975 million. The company is also focused on cost reduction initiatives, targeting $300 million in savings, which are progressing well. Dana’s leadership highlighted their confidence in achieving these savings and noted that the company is well-positioned to manage tariff impacts. These developments reflect Dana’s strategic focus and ongoing efforts to improve financial performance and shareholder returns.
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