With the company finally getting credit for its leverage to EV opportunities in passenger vehicles, commercial trucks, and off-road machinery, Dana (DAN) has done quite well since my last update, rising about 65%. With a growing backlog and outperform on content-per-vehicle growth in EV projects, I believe Dana’s story is getting stronger.
Even after a strong run I still like these shares. While I might lean more strongly toward BorgWarner (BWA) or Valeo (OTCPK:VLEEY) just on the basis of relative valuation, I like Dana’s broad vehicle exposure, particularly as there is less risk of OEM insourcing electric powertrains on the CV/off-highway side. Moreover, pickups and SUVs remain high-priority profit centers for auto OEMs, and a strong market for Dana.
Given all of the above, I think Dana can trade toward $30 over the near term and still offers a high single-digit long-term total annualized potential return.
Follow the link below to the full article:
Dana Starting To Deliver On Its EV Opportunities, And The Street Has Noticed
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