BUZZ-Dana shares soar after cost reduction target boosted

Shares of Dana DAN.N soar 15.4% to $15.27, highest since Sept 2023, on Fri after auto components provider releases preliminary 2024 results, FY 2025 guidance, and boosts cost-savings plans

DAN shares top performers in S&P 1500 .SPSUP and tracking biggest one-day pct advance since Apr 2020

Maumee, Ohio-based firm early Fri said cost-savings actions are "well underway" and it increased cost reduction target to $300 mln, up from $200 mln, by 2026

"Our 2025 outlook reinforces the impact of these actions, which will help solidify Dana's leadership position and enable us to capitalize on the strength of our traditional on-highway businesses while remaining a leader in the EV (electric vehicle) transition," CEO R. Bruce McDonald said

Co expects preliminary sales for FY 2024 of $10.3 bln, in-line with prior guidance, and sees 2025 sales of $9.53-$10.03 bln

Analysts had expected 2025 sales of $9.83 bln, per LSEG

Co also announced changes to reportable business segments to take effect in Q1. New segments will be: Light Vehicle Systems and Commercial Vehicle Systems

With move on Fri, shares up ~32% YTD, following 21% drop in 2024

Of 9 analysts covering DAN, recommendation breakdown is 5 "buy", 2 "hold" and 2 "sell" ratings; median PT of $16 up from $14 a month ago and from $9 on Nov 24 - LSEG