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DAN: Cost Savings And Buybacks Will Drive Stronger Returns Ahead

Share Repurchases And Improved Margins Will Drive Future Upside

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DAN
AnalystConsensusTarget
Not Invested
Published 03 May 2025

Update shared on 11 Dec 2025

Fair value Increased 1.09%
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AnalystConsensusTarget's Fair Value
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1Y
79.3%
7D
8.3%

Analysts have nudged their price target for Dana slightly higher, to approximately $26.43 from about $26.14. They cite marginal improvements in projected profit margins, a modestly lower discount rate, and a slightly higher future earnings multiple, despite slightly weaker revenue growth expectations.

What's in the News

  • Dana raised its 2025 earnings guidance, now expecting sales of $7.3 billion to $7.5 billion, citing accelerated cost savings as the key driver of improved profitability (company guidance).
  • The company reported that from July 1, 2025 to October 29, 2025 it repurchased 9.5 million shares, or 7.24 percent of shares outstanding, for $178.03 million under its ongoing buyback program (company filing).
  • In total, Dana has now completed the repurchase of 24.1 million shares, representing 17.27 percent of its share base, for $434.83 million under the buyback first announced on June 11, 2025 (company filing).

Valuation Changes

  • Fair Value Estimate has risen slightly, increasing from $26.14 to $26.43 per share, reflecting a modest uplift in long term valuation assumptions.
  • Discount Rate has fallen marginally, edging down from 11.81 percent to 11.80 percent, implying a slightly lower perceived risk profile.
  • Revenue Growth Forecast has weakened slightly, with the long term annual decline widening from approximately 6.12 percent to about 6.28 percent.
  • Net Profit Margin has improved modestly, increasing from roughly 3.78 percent to about 3.80 percent, driven by expected cost efficiencies.
  • Future P/E Multiple has risen slightly, moving from 10.92x to 11.04x, indicating a small increase in the valuation investors are expected to pay for Dana's earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.