BorgWarner Upgraded to Overweight Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Yahoo Finance
- Rating Upgrade: BorgWarner has received an upgrade to an overweight rating, indicating analysts' optimistic outlook on its future performance, which may attract more investor interest.
- Price Target Set: Analysts have set an average price target of $70 for BorgWarner, based on the company's growth potential in the electric vehicle and powertrain sectors, suggesting room for future stock price appreciation.
- Market Reaction Anticipation: The rating upgrade and price target increase are likely to drive BorgWarner's stock price up in the short term, thereby enhancing market confidence in its shares and improving liquidity.
- Strategic Implications: This rating adjustment reflects analysts' recognition of BorgWarner's significant role in the automotive industry's transformation, particularly against the backdrop of increasing trends towards electrification and sustainability.
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Analyst Views on BWA
Wall Street analysts forecast BWA stock price to fall
9 Analyst Rating
5 Buy
4 Hold
0 Sell
Moderate Buy
Current: 71.310
Low
49.00
Averages
52.00
High
55.00
Current: 71.310
Low
49.00
Averages
52.00
High
55.00
About BWA
BorgWarner Inc. is engaged in clean technology solutions for combustion, hybrid and electric vehicles. The Company operates in four segments. The Turbos & Thermal Technologies’ technologies include turbochargers, e-boosters, e-turbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, among others. The Drivetrain & Morse Systems segment’s products include control modules, friction and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive (RWD) and all-wheel drive (AWD) transfer case systems and coupling systems. The PowerDrive Systems segment’s products include power electronics such as inverters, onboard chargers, DC/DC converters and combination boxes, and others. The Battery & Charging Systems segment’s products include lithium-ion battery systems for electrified bus, truck and off-highway applications and DC fast chargers suitable for all types of electric vehicles.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BorgWarner Upgraded to Overweight Rating
- Rating Upgrade: BorgWarner has received an upgrade to an overweight rating, indicating analysts' optimistic outlook on its future performance, which may attract more investor interest.
- Price Target Set: Analysts have set an average price target of $70 for BorgWarner, based on the company's growth potential in the electric vehicle and powertrain sectors, suggesting room for future stock price appreciation.
- Market Reaction Anticipation: The rating upgrade and price target increase are likely to drive BorgWarner's stock price up in the short term, thereby enhancing market confidence in its shares and improving liquidity.
- Strategic Implications: This rating adjustment reflects analysts' recognition of BorgWarner's significant role in the automotive industry's transformation, particularly against the backdrop of increasing trends towards electrification and sustainability.
See More
BorgWarner Q1 2026 Earnings Call Highlights
- Strong Sales Performance: BorgWarner achieved $3.5 billion in sales for Q1 2026, with an adjusted operating margin of 10.5%, demonstrating effective cost control that enhances its position in the competitive automotive market.
- Capital Return Strategy: The company returned approximately $185 million to shareholders through share repurchases and quarterly cash dividends in Q1, indicating its commitment to shareholder value while providing funding for future investments.
- Stable Outlook: Management reiterated its 2026 sales guidance in the range of $14.0 billion to $14.3 billion, despite anticipating a sales decline in its battery business due to lack of North American incentives and weaker European demand, showcasing the company's resilience to market fluctuations.
- Industrial Expansion Plans: BorgWarner is advancing its product capabilities for data centers and industrial markets, with a turbine generator launch expected in 2027, reflecting the company's strategic positioning and long-term growth potential in emerging markets.
See More
BorgWarner (BWA) Q1 2026 Earnings Transcript
See More
BorgWarner Secures New Business Awards in Europe and Asia
- New Business Awards: BorgWarner secured a high-efficiency variable turbine geometry turbocharger and exhaust gas recirculation cooler for a major European commercial vehicle OEM, showcasing its robust capabilities in both combustion and electrified powertrain technologies.
- Compliance Platform Support: The European award supports a Euro 7-compliant six-cylinder heavy-duty diesel platform expected to begin production by the end of 2028, indicating the company's strategic positioning in the long-haul trucking market.
- Confidence in Asia: The two Conquest Awards in Asia highlight customer confidence in BorgWarner's engineering and localized manufacturing capabilities, further solidifying its market position across hybrid and combustion applications.
- Earnings Beat Expectations: BorgWarner's latest Q1 earnings report revealed a non-GAAP EPS of $1.24, beating estimates by $0.07, with revenue of $3.53 billion exceeding expectations by $30 million, reflecting the company's competitive strength in the market.
See More
BorgWarner Secures New Deal with European OEM
- New Contract Secured: BorgWarner has signed a new deal with a European OEM, expanding its presence in the on-highway commercial vehicle segment, which includes supplying VTG turbochargers and EGR coolers for a Euro 7-compliant 6-cylinder diesel engine, thereby strengthening customer relationships.
- Fuel Efficiency Focus: The solution aims to enhance fuel efficiency and performance while meeting stricter emission standards, which are critical for long-haul truck demands, showcasing BorgWarner's foresight in environmental technology.
- Production Timeline: Production is expected to commence by the end of 2028, providing long-term revenue visibility with manufacturing operations based in the UK and Spain, thereby enhancing the company's production capacity and market responsiveness.
- Market Outlook: This collaboration not only strengthens BorgWarner's ties with customers but also lays a foundation for future growth, indicating the company's strategic positioning in the commercial vehicle market and its commitment to sustainability.
See More
BORGWARNER ANTICIPATES PHASED PRODUCTION STARTING FROM Q2 2026 TO Q2 2029
Production Timeline: Warner Bros. is expected to begin production in phases from the second quarter of 2026 through the second quarter of 2029.
Project Scope: The production will likely encompass multiple projects or phases during this timeframe.
See More
BorgWarner Upgraded to Overweight Rating
- Rating Upgrade: BorgWarner has received an upgrade to an overweight rating, indicating analysts' optimistic outlook on its future performance, which may attract more investor interest.
- Price Target Set: Analysts have set an average price target of $70 for BorgWarner, based on the company's growth potential in the electric vehicle and powertrain sectors, suggesting room for future stock price appreciation.
- Market Reaction Anticipation: The rating upgrade and price target increase are likely to drive BorgWarner's stock price up in the short term, thereby enhancing market confidence in its shares and improving liquidity.
- Strategic Implications: This rating adjustment reflects analysts' recognition of BorgWarner's significant role in the automotive industry's transformation, particularly against the backdrop of increasing trends towards electrification and sustainability.
See More
BorgWarner Q1 2026 Earnings Call Highlights
- Strong Sales Performance: BorgWarner achieved $3.5 billion in sales for Q1 2026, with an adjusted operating margin of 10.5%, demonstrating effective cost control that enhances its position in the competitive automotive market.
- Capital Return Strategy: The company returned approximately $185 million to shareholders through share repurchases and quarterly cash dividends in Q1, indicating its commitment to shareholder value while providing funding for future investments.
- Stable Outlook: Management reiterated its 2026 sales guidance in the range of $14.0 billion to $14.3 billion, despite anticipating a sales decline in its battery business due to lack of North American incentives and weaker European demand, showcasing the company's resilience to market fluctuations.
- Industrial Expansion Plans: BorgWarner is advancing its product capabilities for data centers and industrial markets, with a turbine generator launch expected in 2027, reflecting the company's strategic positioning and long-term growth potential in emerging markets.
See More
BorgWarner (BWA) Q1 2026 Earnings Transcript
See More
BorgWarner Secures New Business Awards in Europe and Asia
- New Business Awards: BorgWarner secured a high-efficiency variable turbine geometry turbocharger and exhaust gas recirculation cooler for a major European commercial vehicle OEM, showcasing its robust capabilities in both combustion and electrified powertrain technologies.
- Compliance Platform Support: The European award supports a Euro 7-compliant six-cylinder heavy-duty diesel platform expected to begin production by the end of 2028, indicating the company's strategic positioning in the long-haul trucking market.
- Confidence in Asia: The two Conquest Awards in Asia highlight customer confidence in BorgWarner's engineering and localized manufacturing capabilities, further solidifying its market position across hybrid and combustion applications.
- Earnings Beat Expectations: BorgWarner's latest Q1 earnings report revealed a non-GAAP EPS of $1.24, beating estimates by $0.07, with revenue of $3.53 billion exceeding expectations by $30 million, reflecting the company's competitive strength in the market.
See More
BorgWarner Secures New Deal with European OEM
- New Contract Secured: BorgWarner has signed a new deal with a European OEM, expanding its presence in the on-highway commercial vehicle segment, which includes supplying VTG turbochargers and EGR coolers for a Euro 7-compliant 6-cylinder diesel engine, thereby strengthening customer relationships.
- Fuel Efficiency Focus: The solution aims to enhance fuel efficiency and performance while meeting stricter emission standards, which are critical for long-haul truck demands, showcasing BorgWarner's foresight in environmental technology.
- Production Timeline: Production is expected to commence by the end of 2028, providing long-term revenue visibility with manufacturing operations based in the UK and Spain, thereby enhancing the company's production capacity and market responsiveness.
- Market Outlook: This collaboration not only strengthens BorgWarner's ties with customers but also lays a foundation for future growth, indicating the company's strategic positioning in the commercial vehicle market and its commitment to sustainability.
See More
BORGWARNER ANTICIPATES PHASED PRODUCTION STARTING FROM Q2 2026 TO Q2 2029
Production Timeline: Warner Bros. is expected to begin production in phases from the second quarter of 2026 through the second quarter of 2029.
Project Scope: The production will likely encompass multiple projects or phases during this timeframe.
See More
