J.P. Morgan Reports Impressive Results For Dana Holding

In a report published by J.P. Morgan, Dana Holding DAN saw impressive results. J.P. Morgan said that DAN reported a solid Q1 and raised FY2011 guidance despite higher commodities pressure and some Japan quake related headwind. “The disappointment in CV division contribution margin was evident, but more impressive was management's vocal dissatisfaction with this business's current margin profile, suggesting that restructuring will likely come in the next two to four quarters. We raise our EBITDA estimates for FY2011 to the upper end of the guidance to $776MM (vs. $765MM previously) and tweak up our outer year estimates to $983MM and $1,155MM for FY2012 and FY2013 (vs. $960MM and $1,140MM previously), respectively. We also nudge up our Dec-2011 price target to $23 (vs. $22 earlier), based on 5.0x EV/EBITDA multiple applied to 2012e EBITDA. We maintain Neutral based on valuation with a positive bias. ” Dana Holding closed yesterday at $18.57.