UPDATE: Deutsche Bank Downgrades Dana Holding on Valuation

In a report published Monday, Deutsche Bank analyst Patrick Nolan downgraded the rating on Dana Holding (NYSE: DAN) from Buy to Hold, but reiterated the $22.00 price target.

In the report, Deutsche Bank noted, “Dana now trades within 5% of our $22 price target. Our target is based on a 5.5x EV/2014 EBITDAP multiple, the mid-point of the historic supplier range of 5.0x-6.0x. Our target multiple is supported by a DCF analysis which incorporates terminal growth of 2%, a normalized EBIT margin of 7.3% (in-line with our 2013 estimate) and a WACC of 11%. Our target corresponds with a 2014 target P/E of 10.1x, vs. the current supplier range of 9.5x to 14.1x. Hold.”

Dana Holding closed on Friday at $21.06.