Dana Holding (DAN) PT Raised to $10 at CFRA

CFRA analyst Garrett Nelson raised the price target on Dana Holding (NYSE: DAN) to $10.00 (from $6.00) while maintaining a Sell rating.

The analyst comments "We raise our 12-month target to $10 from $6, based on a '25 P/E of 8.3x, a steep but justified discount to historic averages. We maintain our '24 adjusted EPS estimate of $0.80 but increase '25 to $1.20 from $1.00. This morning, DAN reported preliminary results for 2024 and provided initial guidance for 2025. DAN sees 2025 sales of $9.525B-$10.025B, adjusted EBITDA of $925M-$1,025M, and free cash flow of $175M-$275M, versus the current consensus forecasts of $9.83B, $840M and $142M, respectively. DAN said that full year 2024 sales and adjusted EBITDA came in at approximately $10.3B and $885M, respectively, in-line with consensus. While DAN shares are rallying on the upbeat guidance, we are skeptical the guidance is achievable, noting industry headwinds and the company's disappointing track record with respect to achieving guidance. We continue to have concerns regarding DAN's relatively weak margins and free cash flow and higher leverage ratios, and recommend sticking with higher-quality auto supplier names."

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