Wells Fargo raised the firm’s price target on Dana (DAN) to $17 from $15 and keeps an Equal Weight rating on the shares. The firm notes the company announced the sale of off-highway business to Allison Transmission (ALSN) for $2.7B, yet expects $2.4B in proceeds after-tax, where they will use $2B to de-lever. This is below Wells’ base case of $2.9B, or 7.5 times valuation, although the opportunity to de-lever and buy back $550M shares is good.
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