Dauch Corporation initiated with a Buy at Jefferies

Jefferies analyst Vanessa Jeffriess initiated coverage of Dauch Corporation (DCH) with a Buy rating and $10.35 price target The merger with Dowlais creates a strategically logical portfolio well-suited to the US auto backdrop, and the synergies from the deal could be at least 60% higher than the targeted $300M, creating upside risk to margin expansion and deleveraging, the analyst tells investors in a research note. The firm adds that at 5-times expected forward EBITDA, valuation on the stock is “very supportive”.