Stifel says GM production boost ‘incrementally positive’ for Dauch Corporation

Stifel analyst Nathan Jones maintains a Hold rating on Dauch Corporation (DCH) shares with a price target of $8 after the Wall Street Journal reported that General Motors (GM) will increase production at its Flint, Michigan facility to six days a week starting in June. The decision comes as the automaker looks to produce more gasoline powered Chevrolet Silverado and GMC Sierra pickup trucks as demand continues to grow for these models despite higher fuel prices. In the firm’s view, Dauch is the supplier in its coverage that benefits most from increased production of these models with GM representing approximately 27% of Dauch customer sales, and Dauch citing the T1 platform as one of its largest platforms.