DAN: Transformative Deal; Maintain Outperform

研报英文原文证据摘录

DAN: Transformative Deal; Maintain Outperform

RBC Capital Markets, LLC

Tom Narayan (Analyst)

(212) 428-2364, tom.narayan@rbccm.com

Thomas Ito, CFA (Senior Associate)

(212) 301-1402, thomas.ito@rbccm.com

June 11, 2026 Outperform

NYSE: DAN; USD 35.47 Dana Incorporated Price Target USD 41.00RESEARCH Transformative Deal; Maintain Outperform Scenario Analysis*

Our view: We think today's 12% pullback is more related to deal Downside Current Price Upside

dynamics than fundamentals. The transaction increases exposure to a Scenario Price Target Scenario

more attractive CV and aftermarket business and appears to have been 27.00 35.47 41.00 48.00

done at an attractive price. Shares might be range-bound near term given 24% 16% 36%

no buybacks for 24 months and the overhang of Eaton shareholder selling, *Implied Total Returns

but longer term, we expect shares to recover as the multiple re-rates higher. Key Statistics

Shares O/S (MM): 109.9 Market Cap (MM): 3,898EQUITY Dividend: 0.10 Yield: 0.3% Key points: Avg. Daily Volume: 1,025,214

Transformative Deal. As we discussed (see report) earlier today, Dana's

combination with Eaton's (covered by RBC Industrials Analyst Deane Dray) RBC Estimates

Mobility business increases Dana's higher multiple CV and aftermarket FY Dec 2025A 2026E 2027E

exposures to 27%/16% from 20%/12% LV/CV/Aftermkt. On the deal- Revenue 7,500.0 7,662.5 8,247.6

specific conference call held this am, management indicated that it had EPS, Ops Diluted 0.56 2.57 4.70

been working aggressively on this deal. Eaton announced its intention to P/E 63.2x 13.8x 7.5x

EBITDA 610.0 824.5 964.7 sell this business on January 26, and we think that this could have helped

Dana secure a good purchase price for it. Revenue Q1 Q2 Q3 Q4

2025 1,781.0A 1,935.0A 1,917.0A 1,867.0A