Dana Inc (DAN) Is Building A Bigger Auto Parts Business. Here’s Why Its A Good Buy

1 month ago 12

Jabran Kundi

Wed, July 15, 2026 astatine 8:46 AM CDT 2 min read

Dana Inc. (NYSE:DAN) is 1 of the 8 Most Undervalued Growth Stocks to Buy for the Next 10 Years. On July 7, Deutsche Bank lowered its terms people connected Dana Inc. (NYSE:DAN) to $39 from $40 and maintained a Buy standing connected the stock. Based connected the revised terms target, determination is simply a 53% upside from existent levels. This upside is little than the median Wall Street analysts' upside of 61% based connected 10 analysts' estimates.

In our previous sum of the stock, we mentioned the company's acquisition of Eaton's Mobility Group. This acquisition was believed to heighten Dana's semipermanent concern illustration done higher margins, accrued aftermarket exposure, and greater scale. On June 10, some companies entered into definitive agreements for a Reverse Morris Trust transaction. As portion of the transaction, Eaton volition transportation its Vehicle and eMobility concern into the recently created SpinCo earlier it merges with Dana. A Separation and Distribution Agreement volition govern this transfer. Additionally, a Dana subsidiary volition besides get Royal Precision Holding Corp. from Eaton, adding further assets to the combined company.

Dana and SpinCo secured a $2.6 cardinal short-term span indebtedness committedness from Goldman Sachs to assistance money the transaction. The financing volition beryllium utilized to enactment an astir $1.1 cardinal currency outgo to Eaton and to refinance definite existing Dana debt. However, the transaction is inactive taxable to respective conditions, including DAN shareholder support and aggregate regulatory clearances.

Dana Inc. (NYSE:DAN), unneurotic with its subsidiaries, provides power-conveyance and energy-management solutions for on-highway vehicles. The institution besides provides sealing solutions specified arsenic gaskets, seals, cam covers, and lipid cookware modules. It was founded successful 1904 and is headquartered successful Maumee, Ohio.

While we admit the imaginable of DAN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 10 Best AI Stocks to Watch successful July and 12 Best Dow Stocks to Invest In Right Now.

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