Barclays downgraded Dana Incorporated to Equal Weight from Overweight and lowered its price target to $33 from $41 following the company's acquisition of Eaton's Mobility Group. The firm acknowledged the deal should enhance Dana's long-term business profile through higher margins, increased aftermarket exposure, and greater scale, but believes shareholders may need to wait before these benefits are fully reflected in the valuation. Barclays also noted that the absence of share repurchases over the next two and a half years could limit near-term upside. Earlier, on June 12, Wells Fargo reduced its price target on Dana to $33 from $36 while maintaining an Equal Weight rating, citing ambitious long-term integration and financial targets that will require effective execution.
Barclays PLC
Wells Fargo & CompanyDana IncBarclays downgraded Dana to Equal Weight and cut price target to $33, citing acquisition risks and lack of share repurchases.