Tuesday, August 25, 2020

Dana Undervalued On Underappreciated Margins And EV Leverage

Dana (DAN) has admittedly been something of a value trap for a little while now, though recent performance relative to names like American Axle (ALX) has improved some. I continue to believe that the Street remains stuck on “old Dana” and fails to recognize and appreciate not only better-than-expected decremental margins through this trough, but positive leverage to both North American light vehicle trends and long-term commercial and off-road vehicle electrification.

Dana shares have seen a double-digit improvement since my last write-up, but I continue to see fair value in the high teens.

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Dana Undervalued On Underappreciated Margins And EV Leverage

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