Dana upgraded to Equal Weight from Underweight at Wells Fargo

Wells Fargo analyst Colin Langan upgraded Dana (DAN) to Equal Weight from Underweight with a price target of $16, up from $10. The firm remains skeptical Dana will achieve its new $300M cost-out target by 2026. Wells estimates this would be a surprisingly high 50% of RemainCo SG&A and engineering cost. Also, the organic guide of -2.5% seems optimistic given market and Super Duty headwinds. That said, Off-Highway valuations are wide, but management noted strategic interest which could imply higher pricing given synergies. Ahead of the Off-Highway sales, the firm sees the near-term risk-reward now skewed more positive.