08:55 AM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $2 to $12, based on a '25 P/E of 8.9x, a justified discount to DAN's 10-year mean forward P/E of 13.9x. We maintain our adjusted EPS estimates of $0.65 for '24 and $1.35 for '25. DAN posts Q1 adjusted EPS of $0.27 vs. $0.25 (+8%), ahead of the $0.18 consensus. The beat was driven by stronger-than-expected sales and margins, as revenue rose 4% to $2.74B ($40M ahead of consensus) and adjusted EBITDA margin expanded 50 bps to 8.2% (20 bps above consensus). Reported EPS of $0.02 included a $0.25/share charge for certain assets held for sale. DAN maintained 2024 guidance for net sales and EPS of $10.65B-$11.15B and $0.35-$0.85, respectively, versus the current consensus of $10.89B and $0.91. We raise our opinion to Hold. While DAN's balance sheet is still overleveraged and expected 2024 free cash flow of only $50M-$100M should do little to help with debt paydown, earnings growth is expected to accelerate in 2025, which we think will help ease investor concerns surrounding the story.