On May 22, RBC Capital Markets analyst Tom Narayan upped Dana Incorporated (NYSE:DAN)’s stock from “Sector Perform” to “Outperform”, while raising the price objective to $20.00 from $14.00.

This upgrade comes on the heels of expectations that Dana Incorporated (NYSE:DAN) will announce its Off-Highway (OH) deal in June. This will result in positive outcomes and potentially higher capital returns. Furthermore, the analyst believes that even without the deal, the company’s core business fundamentals remain strong, and it seems that the market is not fully appreciating this.Dana (DAN) Stock Rises After RBC’s Upgrade

A modern commercial vehicle on the road, its engine powered by the company's drive system.

The sale of Dana Incorporated (NYSE:DAN)’s Off-Highway business remains underway with a competitive process. It continues to execute its cost-savings initiative and has adopted steps focused on accelerating the realization of its $300 million plan.  The overall market sentiment related to tariffs continues to become more favorable, and Dana Incorporated (NYSE:DAN) remains well-placed in this area due to lower exposure in comparison to its automotive peers, says Narayan.

This gives the company a relative advantage in the broader market, which remains sensitive to international trade issues. Furthermore, the potential deal can provide the company an opportunity to return additional capital to its shareholders.

Dana Incorporated (NYSE:DAN) offers power-conveyance and energy-management solutions for vehicles and machinery.

While we acknowledge the potential of DAN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than DAN and that has 100x upside potential, check out our report about this cheapest AI stock.

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