Shares of BWA.N experienced a notable uptick today, crossing above the 5-day simple moving average (SMA) and closing at $42.94. This technical breakout suggests a potential shift in momentum, attracting attention from traders and investors alike. The recent activity in put and call options has further fueled interest, with a $42.50 put contract offering a bid of $1.60, effectively lowering the cost basis for investors to $40.90, representing a 1% discount from the current price.
Additionally, the put contract carries a 60% chance of expiring worthless, which could yield a 3.76% return on the cash commitment, translating to an annualized yield of 5.75%. On the call side, the $45.00 call contract, with a bid of $1.85, presents a potential total return of 9.11% if the stock is called away by July 2026. With a 49% chance of expiring worthless, this strategy allows investors to retain both shares and premium, potentially adding an additional 4.31% return, or 6.58% annualized. Overall, the combination of technical movement and favorable options dynamics positions BWA.N as a stock to watch in the coming weeks.
Wall Street analysts forecast BWA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BWA is 51.50 USD with a low forecast of 45.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
Wall Street analysts forecast BWA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BWA is 51.50 USD with a low forecast of 45.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
3 Hold
0 Sell
Moderate Buy
Current: 48.930
Low
45.00
Averages
51.50
High
55.00
Current: 48.930
Low
45.00
Averages
51.50
High
55.00
Piper Sandler
Overweight -> Neutral
downgrade
$52 -> $51
2026-01-08
Reason
Piper Sandler
Price Target
$52 -> $51
AI Analysis
2026-01-08
downgrade
Overweight -> Neutral
Reason
Piper Sandler downgraded BorgWarner to Neutral from Overweight with a price target of $51, down from $52. The firm cites valuation for the downgrade. BorgWarner remains well positioned to grow revenue modestly, regardless of uncertainty in market-wide drivetrain mix, the analyst tells investors in a research note.
Morgan Stanley
Overweight -> Equal Weight
downgrade
$42 -> $49
2025-12-08
Reason
Morgan Stanley
Price Target
$42 -> $49
2025-12-08
downgrade
Overweight -> Equal Weight
Reason
Morgan Stanley downgraded BorgWarner to Equal Weight from Overweight with a price target of $49, up from $42, following a change in analysts. The firm adjusted ratings in the autos and shared mobility group as part of its 2026 outlook. Morgan Stanley is "leaning more cautious" into next year, saying the electric vehicle "winter" will sustain through 2026. This is counterbalanced by a "moderately more positive" outlook on internal combustion engines and hybrids, the analyst tells investors in a research note.
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Evercore ISI
Chris McNally
Outperform
maintain
$50 -> $53
2025-11-24
Reason
Evercore ISI
Chris McNally
Price Target
$50 -> $53
2025-11-24
maintain
Outperform
Reason
Evercore ISI analyst Chris McNally raised the firm's price target on BorgWarner to $53 from $50 and keeps an Outperform rating on the shares. The firm, which adjusts its auto sector targets to 2027 methodologies, contends that the sector shows promise due to the "K-economy" and replacement demand. The firm sees 20%-plus upside for the auto sector in the next year, driven by a shift from "25 Fears" to "27 Outlooks," the analyst added.
TD Cowen
Itay Michaeli
Hold
maintain
$44 -> $45
2025-11-03
Reason
TD Cowen
Itay Michaeli
Price Target
$44 -> $45
2025-11-03
maintain
Hold
Reason
TD Cowen analyst Itay Michaeli raised the firm's price target on BorgWarner to $45 from $44 and keeps a Hold rating on the shares. The firm said it was another solid quarter highlighted by strong margin execution and new business awards, along with higher FCF. No major surprises, with the updated 2025 EBIT guide comparing favorably with peers.
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.
