Dana downgraded to Underweight on end market risk at Wells Fargo

Wells Fargo analyst Colin Langan downgraded Dana to Underweight from Equal Weight with a price target of $9, down from $13. The firm cites commercial and off-highway market headwinds, tough Super Duty compares, and high recession risk for the downgrade. The analyst remains “skeptical” of Dana’s 2024 guidance and sees risk to 2025 sales estimates given expected double-digit declines in North America heavy truck and Super Duty. Dana also screens poorly in a recession with low free cash flow generation, the analyst tells investors in a research note.