Wells Fargo Says Dana (DAN) Merger will Boost Aftermarket and Commercial Vehicle Exposure

Dana Incorporated (NYSE:DAN) is included among Billionaire Mario Gabelli’s Top 12 Dividend Stocks.

On June 12, Wells Fargo lowered its price recommendation on Dana Incorporated (NYSE:DAN) to $33 from $36. It reiterated an Equal Weight rating on the stock. The firm pointed to Dana’s planned merger with Eaton Mobility (NYSE), noting that the transaction will increase Dana’s exposure to the aftermarket and commercial vehicle (CV) markets. Wells Fargo also said that the company’s growth expectations and projected synergies appear ambitious.

In related news, Reuters reported on June 11 that Dana will combine with Eaton’s mobility business. The transaction values the unit at approximately $5.1 billion. The companies announced the deal as Dana seeks to benefit from resilient aftermarket demand. Under the agreement, Eaton shareholders will own at least 50.1% of the combined company, while Dana shareholders will hold about 49.9% at closing, which is expected in the first quarter of 2027. The combined company will continue operating as Dana Inc. and is expected to have an enterprise value of more than $10 billion.

Dana said the new company is expected to generate $250 million in run-rate cost synergies within 24 months of closing the transaction.

Dana Incorporated (NYSE:DAN) designs and manufactures propulsion and energy-management solutions for vehicles and machines across global mobility markets. The company provides solutions primarily for on-highway vehicles.

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