Sum Up The Pieces: RPV Could Be Worth $108
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2025
0mins
Should l Buy BWA?
Source: NASDAQ.COM
ETF Analysis: The Invesco S&P 500 Pure Value ETF (RPV) has an implied analyst target price of $107.65 per unit, indicating a potential upside of 16.07% from its current trading price of $92.74.
Stock Performance Insights: Notable underlying holdings such as BorgWarner Inc, Viatris Inc, and Occidental Petroleum Corp show significant upside potential based on analysts' target prices, raising questions about the validity of these targets in light of recent market developments.
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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: 59.410
Low
49.00
Averages
52.00
High
55.00
Current: 59.410
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 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 Q1 Earnings Exceed Expectations
- Earnings Beat: BorgWarner reported Q1 non-GAAP EPS of $1.24, exceeding expectations by $0.07, with revenue of $3.53 billion reflecting a 0.3% year-over-year increase, surpassing estimates by $30 million, indicating resilience in the market.
- Sales Growth Analysis: While U.S. GAAP net sales increased approximately 1% year-over-year, organic net sales fell by about 4.2%, primarily due to declines in the Battery Energy Systems segment, reflecting alignment with the company's expectations in the light vehicle market.
- 2026 Outlook: The company maintained its full-year guidance for 2026, expecting net sales between $14.0 billion and $14.3 billion, despite anticipated organic sales declines of 3.5% to 1.5%, demonstrating confidence in future performance.
- Cash Flow Expectations: Operating cash flow for 2026 is projected to be between $1.6 billion and $1.7 billion, while free cash flow is expected to range from $900 million to $1.1 billion, indicating robust cash management and future investment capacity.
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 Q1 Earnings Exceed Expectations
- Earnings Beat: BorgWarner reported Q1 non-GAAP EPS of $1.24, exceeding expectations by $0.07, with revenue of $3.53 billion reflecting a 0.3% year-over-year increase, surpassing estimates by $30 million, indicating resilience in the market.
- Sales Growth Analysis: While U.S. GAAP net sales increased approximately 1% year-over-year, organic net sales fell by about 4.2%, primarily due to declines in the Battery Energy Systems segment, reflecting alignment with the company's expectations in the light vehicle market.
- 2026 Outlook: The company maintained its full-year guidance for 2026, expecting net sales between $14.0 billion and $14.3 billion, despite anticipated organic sales declines of 3.5% to 1.5%, demonstrating confidence in future performance.
- Cash Flow Expectations: Operating cash flow for 2026 is projected to be between $1.6 billion and $1.7 billion, while free cash flow is expected to range from $900 million to $1.1 billion, indicating robust cash management and future investment capacity.
See More
