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Wire

Dana's Merger With Eaton Mobility Unit 'Transformative,' RBC Says

Dana (DAN) proposed merger with Eaton's (ETN) Mobility unit is a "transformative deal" that boosts its exposure to a more attractive commercial vehicle market and aftermarket business, RBC Capital Markets said in a note emailed Friday.Dana believes that it can cut redundant overhead costs in both light vehicle and commercial vehicle segments on a regional basis, RBC analysts said. Purchasing was also mentioned as a significant source of cost savings, as the Eaton Mobility unit has more purchasing synergies with Dana compared with the broader Eaton portfolio, the analysts noted.Dana's recent 12% stock price drop has more to do with the deal dynamics of the merger rather than its fundamentals, according to the note.The company's shares may be range-bound in the short term, given that the deal's Reverse Morris Trust dynamics means Dana cannot buy back stock for 24 months, the analysts said. However, they said they expect shares to recover in the longer term.RBC maintained the company's stock rating at outperform and price target at $41.Price: $30.40, Change: $+0.29, Percent Change: +0.96%

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Update: Wall Street Logs Best Day in 2 Months as Trump Sparks Hope For Iran Deal
US Markets

Update: Wall Street Logs Best Day in 2 Months as Trump Sparks Hope For Iran Deal

(Updates with market moves at the end of the day and any new developments.)US equities rallied Thursday, pushing major indexes to their best day in more than two months, while oil prices tumbled after President Donald Trump signaled a breakthrough in talks with Iran to end the war.The Nasdaq closed 2.5% higher at 25,809.7, while the Dow Jones Industrial Average advanced 1.9% to 50,848.8. The S&P 500 climbed 1.8% to 7,394.3. All three indexes notched their biggest one-day percentage gains since April 8. Most sectors were in the green, led by materials and industrials, while energy saw the biggest drop.West Texas Intermediate crude oil was down 4% at $86.39 a barrel in Thursday late-afternoon trade, while Brent fell 4.4% to $89.03.Trump said on Thursday that the US "just made a great settlement of the war with Iran," subject to the "finalization of documents," CNBC reported.A deal is expected to be signed "over the next few days," he reportedly said.Earlier in the day, Trump canceled scheduled strikes against Iran following increased hostilities, including US strikes in response to Tehran shooting down an American Apache helicopter.The Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecast for this year, but raised its expectations for 2027.US Treasury yields tumbled, with the 10-year rate last down nine basis points at 4.47% and the two-year rate falling 9.8 basis points to 4.06%.In economic news, US producer prices rose more than projected in May, matching the previous month's pace, while the annual increase reached the highest since late 2022 amid surging energy costs, government data showed.On Wednesday, consumer price data showed inflation accelerating to the fastest pace in about three years last month, reinforcing expectations that the Federal Reserve will keep interest rates on hold for some time."A fresh multiyear high in consumer and producer prices underscores the pain befallen on consumers resulting from disruptions in the global energy market," Stifel said in a note. "For the Fed, dangerously high levels of inflation suggest additional accommodation is off the table, at least for now."In company news, Eaton (ETN) will combine its mobility business with auto parts supplier Dana (DAN), creating a global powertrain entity valued at more than $10 billion. Eaton shares advanced 4.8%, while Dana slumped 15%.Oracle (ORCL) shares slumped 8.5%, the second-worst performer on the S&P 500. Late Wednesday, the cloud computing company's fiscal fourth-quarter results surpassed Wall Street's estimates, driven by rising demand for cloud infrastructure amid an artificial intelligence boom.UBS Securities said Thursday the sell-off in Oracle's shares could be due in part to its higher-than-expected capital expenditure outlook for the year.Gold was up 0.9% at $4,169.10 per troy ounce, while silver rose 1.9% to $66 per ounce.

Dow JonesNasdaq CompositeS&P 500$DAN$ETN$ORCL
Update: Equities Rise Intraday, Oil Drops as Trump Cancels Iran Strikes
US Markets

Update: Equities Rise Intraday, Oil Drops as Trump Cancels Iran Strikes

(Updates with latest market prices and developments.)US benchmark equity indexes were higher intraday, while oil prices fell as President Donald Trump called off the latest round of strikes against Iran.The Dow Jones Industrial Average was up 1.5% at 50,687.4 after midday Thursday, while the Nasdaq Composite rose 1.6% to 25,563.4. The S&P 500 increased 1.2% to 7,352.8. Barring energy and communication services, all sectors were in the green, led by industrials.West Texas Intermediate crude oil was down 3.5% at $86.91 a barrel, while Brent fell 3.9% to $89.52.Trump said he has cancelled the strikes and bombings against Iran that were scheduled for later in the day."Discussions and final points have been, in both concept and great detail, approved by all parties involved," Trump said in a social media post. "The naval blockade will remain in full force and effect until this transaction is finalized -- time and place of the signing to be announced shortly."US forces launched airstrikes against Iran Tuesday after Tehran shot down an American Apache helicopter. The US fired additional missiles Wednesday.Iran's strait authority said earlier in the day that the Strait of Hormuz will be closed "until further notice" following an exchange of fire with the US, CNN reported Thursday.The Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecast for this year, but raised its expectations for 2027.US Treasury yields were lower intraday, with the 10-year rate down 6.5 basis points at 4.48% and the two-year rate falling five basis points to 4.08%.In economic news, US producer prices rose more than projected in May, matching the previous month's pace, while the annual increase reached the highest since late 2022 amid surging energy costs, government data showed.On Wednesday, consumer price data showed inflation accelerating to the fastest pace in about three years last month, reinforcing expectations that the Federal Reserve will keep interest rates on hold."A fresh multiyear high in consumer and producer prices underscores the pain befallen on consumers resulting from disruptions in the global energy market," Stifel said in a note. "For the Fed, dangerously high levels of inflation suggest additional accommodation is off the table, at least for now."In company news, Eaton (ETN) will combine its mobility business with auto parts supplier Dana (DAN), creating a global powertrain entity valued at more than $10 billion. Eaton shares were up 4.6% intraday, while Dana slumped 15%.Oracle (ORCL) shares were down nearly 12%, the worst performer on the S&P 500. Late Wednesday, the cloud computing company's fiscal fourth-quarter results surpassed Wall Street's estimates, driven by rising demand for cloud infrastructure amid an artificial intelligence boom.UBS Securities said Thursday the sell-off in Oracle's shares could be due in part to its higher-than-expected capital expenditure outlook for the year.Adobe (ADBE), Lennar (LEN) and RH (RH) are expected to report results after the closing bell Thursday, along with others.Gold was up 0.9% at $4,169.10 per troy ounce, while silver rose 1.9% to $66 per ounce.

Dow JonesNasdaq CompositeS&P 500$ADBE$DAN$ETN$LEN$ORCL$RH
Wire

Top Midday Stories: SpaceX IPO Said to Draw Over $70 Billion in Retail Orders; Oracle Earnings Top Estimates, Plans to Raise Another $20 Billion

All three major US stock indexes were up in late-morning trading Thursday, as chip stocks rebounded and in spite of heightened tensions between the US and Iran.President Donald Trump said Thursday on Truth Social that the US will hit Iran with an attack "VERY HARD TONIGHT," and that it will take control of Kharg Island sometime in the "not so distant future." Meanwhile, Iran said it will treat all of Elon Musk's companies operating in the Middle East as military targets, CNBC reported, citing a report by Iranian state media outlet Fars.In company news, SpaceX's initial public offering, which prices Thursday, has drawn over $70 billion in orders from retail investors, Bloomberg reported, citing people familiar with the matter. Retail investors are likely to be allocated at least 20% of the available shares. At SpaceX's target IPO size of $75 billion, that allocation would leave the majority of retail demand unfulfilled, the report said, citing the people and Bloomberg's own calculations.Oracle (ORCL) reported fiscal Q4 adjusted earnings late Wednesday of $2.11 per diluted share, up from $1.70 a year earlier and above the FactSet consensus analyst estimate of $1.96. Fiscal Q4 revenue was $19.18 billion, up from $15.90 billion a year ago and above the FactSet consensus of $19.10 billion. For fiscal Q1, the company said it expects adjusted EPS of $1.72 to $1.76 on revenue growth of 27% to 29%. Analysts expect EPS of $1.68. For full-year 2027, the company said it expects adjusted EPS of $8.05 on revenue of $90 billion. Analysts expect $8.02 and $88.78 billion, respectively. Oracle's gross margin fell by about 5 points in 2026, and Chief Financial Officer Hilary Maxson said the company expects gross margin to fall further in 2027 "due to timing for the ramp-up of our data center projects into their full revenue contribution, plus impacts from mix." Oracle is expected to have a net cash outlay for capital expenditures of around $70 billion in fiscal 2027, up from $48 billion a year ago, it said. Finally, the company said it plans to raise about $40 billion via debt and equity issuances in fiscal 2027, including its previously announced $20 billion stock sale. Oracle shares were down 11.1% around midday.Amazon (AMZN) said Thursday its global data center footprint used 2.5 billion gallons of water in 2025, as the tech giant provided an update for its 2030 goal of returning more water to the communities where it operates than what it uses for its data centers. The tech giant returned three gallons for every four it used last year, meaning it is 75% of the way to its water-positive goal, it said. Amazon shares were down 0.4%.Dana (DAN) has agreed to merger with Eaton's (ETN) Mobility unit in a Reverse Morris Trust transaction valued at $5.1 billion, the companies said Thursday. Eaton will receive a $1.1 billion cash distribution, while its shareholders will take a minimum 50.1% equity stake in the new business, the companies said. The combined entity will retain the Dana name and will be led by Chief Executive Byron Foster, the companies said. The deal is expected to close in Q1 2027, they said. Dana shares were down 10.5%, while Eaton shares were up 2.0%.Super Micro Computer (SMCI) said Thursday that it plans to raise up to $7 billion through a package of equity and equity-linked financing transactions. The company said it will sell 45.5 million common shares at $27.50 apiece, raising net proceeds of $1.22 billion. Super Micro shares were up 0.3%.Price: $179.00, Change: $-22.26, Percent Change: -11.06%

$AMZN$DAN$ETN$ORCL$SMCI
Eaton to Combine Mobility Unit With Dana, Creating $10 billion Powertrain Systems Provider
US Markets

Eaton to Combine Mobility Unit With Dana, Creating $10 billion Powertrain Systems Provider

Eaton (ETN) will combine its mobility business with auto parts supplier Dana (DAN), creating a global powertrain entity valued at more than $10 billion, the companies said in separate statements Thursday.The transaction is structured as a Reverse Morris Trust, under which Eaton will first separate the mobility unit. Dana will then merge with a subsidiary of the mobility business and emerge as the serving entity, according to the companies.The deal values the mobility business at about $5.1 billion. Eaton shareholders will own at least 50.1% of the combined entity, with Dana's investors holding the remaining 49.9%. Eaton will receive a cash distribution of approximately $1.1 billion prior to completion of the transaction.The deal values the combined company, which will operate as Dana, at more than $10 billion in enterprise value, the companies said. The transaction, which requires approval from Dana's shareholders and clearance from regulators, is expected to complete in the first quarter of 2027.Dana's shares plunged 16% as trading got underway on Thursday, while Eaton gained 1.4%.The transaction will integrate Dana's global powertrain, thermal and sealing technologies with the mobility business' commercial vehicle transmissions, engine and emissions products. The combined entity is estimated to have $11 billion in sales on a pro forma basis."Eaton shareholders will benefit from the meaningful upside created by the combined company, and the transaction will provide substantial cash value for Eaton to deploy to our highest-growth and highest-margin opportunities," Chief Executive Paulo Ruiz said in a statement.The separation is part of Eaton's portfolio transformation and allows it to focus on its electrical and aerospace segments. Earlier this year, the company announced its intention to spin off the mobility business into a publicly traded company.Eaton estimates the deal to be immediately accretive to its organic growth rate and operating margins. The companies expect the transaction to generate $250 million in run-rate cost synergies."This transaction marks an important milestone in our transformation," Dana's incoming CEO, Byron Foster, said. "By expanding our presence in core markets with new products and complementary technologies, we are enhancing our ability to deliver greater value to customers while strengthening margins through a more balanced portfolio and meaningful synergies."Foster and Dana Chief Financial Officer Timothy Kraus will lead the combined company in their respective current roles. R. Bruce McDonald, Dana's current CEO and chairman, will serve as executive chairman of the combined entity.Dana is now targeting $14 billion to $15 billion in sales by 2030, up from its previous target of roughly $10 billion, Kraus said.

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Research

Research Alert: CFRA Maintains Hold Opinion On Shares Of Dana Incorporated

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our 12-month target price at $40, based on a 2027 P/E of 12.9x, a justified discount to DAN's five-year average forward P/E of 16.1x. We raise our adjusted EPS estimates to $2.70 from $2.30 for '26 and to $3.10 from $2.95 for '27. Following DAN's Q1 earnings release, we are raising our estimates but maintaining a Hold on the shares. While we think the company has made impressive strides in terms of operational improvement and reducing its share count through buybacks, we view the positives surrounding the story as largely discounted at current levels, noting that DAN was the best-performing stock in the auto supplier space by a wide margin in 2025 (+110% vs. +16% for the S&P 500). Additionally, while the 2025 sale of its Off-Highway business was transformational, the segment was its highest-margin division. Additionally, we think the fact DAN didn't raise full-year guidance considering the magnitude of its Q1 beat was somewhat disappointing.

$DAN
Research

Research Alert: Dan: Q1 Ahead Of Expectations; Maintains 2026 Guidance

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Dana Incorporated (DAN) posted Q1 adjusted EBITDA of $171M vs. $93M (+84%), ahead of the $160M consensus. Revenue rose 5% to $1.87B ($40M ahead of consensus) and adjusted EBITDA margin expanded 400 bps to 9.2% (40 bps above consensus). DAN's Q1 adjusted EBITDA margin expansion was due to cost savings and efficiency improvements. Management said it realized $35M in additional cost savings during Q1. DAN reaffirmed its prior 2026 guidance, and management said the Dana 2030 plan outlines a clear path to higher sales, structurally higher margins, and increased adjusted free cash flow generation. DAN said it repurchased 4.4M shares for $125M in Q1. The company also currently pays a $0.48/share annualized dividend. DAN's shares were little changed following the release. DAN was the best-performing stock in the auto supplier space by a wide margin in 2025 (+110% vs. +16% for the S&P 500), and we consider management's significant margin improvement progress and aggressive share repurchases as positives.

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Wire

UBS Adjusts Price Target on Dana to $42 From $40, Maintains Buy Rating

Dana (DAN) has an average rating of overweight and mean price target of $39.86, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $36.79, Change: $+0.10, Percent Change: +0.27%

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