Story updated at 9:55 a.m. to reflect market activity.
Dana fell -1.1% to $23.60 in morning trading.
The firm set a price target of $27 for the auto parts company. The downgrade is a valuation call given Dana's exposure to Latin America according to Goldman Sachs analysts.
Separately, TheStreet Ratings team rates DANA HOLDING CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DANA HOLDING CORP (DAN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 100.00% to $0.00 million when compared to the same quarter last year. In addition, DANA HOLDING CORP has also vastly surpassed the industry average cash flow growth rate of 33.54%.
- DANA HOLDING CORP has improved earnings per share by 5.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DANA HOLDING CORP swung to a loss, reporting -$0.29 versus $1.40 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus -$0.29).
- The gross profit margin for DANA HOLDING CORP is rather low; currently it is at 16.35%. Regardless of DAN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.01% trails the industry average.
- You can view the full analysis from the report here: DAN Ratings Report