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Research Alert: CFRA Reiterates Sell Opinion On Shares Of Dana Incorporated
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Research Alert: CFRA Reiterates Sell Opinion On Shares Of Dana Incorporated
Apr 9, 2025 11:35 AM

02:05 PM EDT, 04/09/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $4 to $8, based on a 2026 P/E of 6.4x, a justified discount to peers. We cut our adjusted EPS estimates to $1.25 from $1.50 for 2025 and to $1.25 from $1.60 for 2026. We view DAN and other auto suppliers as some of the most tariff-impacted companies, as their sales and earnings are largely tied to vehicle production rates. We see U.S. consumers increasingly trading down to used vehicles for affordability reasons, which should negatively impact demand for new vehicles at a time when inventory levels are already well above average. We see the risk of additional auto manufacturing plants being idled, and lower auto production should negatively affect auto supplier sales. DAN's highest margin segment is off-highway (47% of total EBITDA and a 15.1% segment EBITDA margin in 2024), which we view as particularly recession-sensitive and could impact the possible divestiture of the business, as announced last November. DAN's 2024 sales mix was 45% U.S. and 55% non-U.S.

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