FBR Capital Downgrades Dana Holding (DAN) to Market Perform; Upside Priced In
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FBR Capital downgraded Dana Holding (NYSE: DAN) from Outperform to Market Perform and maintains a $17 price target following rump victory and SAAR plateau. The firm said the company's manufacturing/distribution facilities but said upside is priced into the shares.
Analyst Christopher Van Horn commented, "Dana has a relatively high level of geographic diversification. Based on the recent filings, it has manufacturing/distribution facilities in North America (35), Europe (19), South America (8), and Asia-Pacific (17). This diversity of exposure should help the company cope with slowing production in the U.S.; however, we think that at current levels, much of the possible upside is priced into shares. The North American plateau will likely prove a near-term challenge, offsetting international and new product growth opportunities. Ongoing headwinds from lower commercial truck demand and from a challenging South American macro environment are also incremental negatives. We believe that DAN shares have a reduced near-term potential to outperform the group, and we accordingly reduce our rating to Market Perform from Outperform, and reiterate our DCFderived $17 price target."
Shares of Dana Holding closed at $15.79 yesterday.
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