Barclays downgrades Dana Incorporated to Equal Weight and lowers its price target amid acquisition-related near-term valuation concerns.
Barclays reduced its price target for Dana Incorporated (DAN) to $33 from $41 and downgraded the stock to Equal Weight from Overweight. The move follows Dana’s acquisition of Eaton’s Mobility Group, which Barclays expects to improve long-term margins and aftermarket exposure but delay near-term valuation gains.
The firm cited the absence of share repurchases over the next two and a half years as a limiting factor for upside. Earlier, Wells Fargo trimmed its DAN price target to $33 from $36 while maintaining an Equal Weight rating, noting ambitious integration and financial targets for the deal.
Dana’s acquisition expands its commercial vehicle and aftermarket segments, though execution risks remain. The company’s long-term EPS growth is forecast at 128.01% over the next five years.