Stock Price & Analysis

Based on the recent data and analysis, here's a direct assessment of BWA stock:

Technical Analysis

BWA is currently showing bearish momentum with the stock trading at $30.22, significantly below its 200-day moving average of $33.38. The RSI-14 at 42.41 indicates neutral to slightly oversold conditions, while the MACD shows a negative trend with -0.77.

Recent Performance & Valuation

The stock has significantly underperformed the broader market, gaining only 6.9% compared to the S&P 500's 22.6% over the past 52 weeks. The current price represents a compelling entry point with analysts projecting a mean price target of $39.71, suggesting a 27.4% upside potential.

Fundamental Outlook

• Q4 2024 Results:

  • Revenue: $3.44 billion (-2.4% YoY)
  • Adjusted operating margin: 10.2%
  • Strong free cash flow: $539 million

• 2025 Guidance:

  • Sales forecast: $13.4-14.0 billion
  • Adjusted EPS: $4.05-4.40
  • Operating margin: 10.0-10.2%

Analyst Consensus

Among 15 analysts covering BWA, the consensus is "Moderate Buy" with:

• 9 Strong Buys
• 1 Moderate Buy
• 5 Holds

Sell Recommendation

Despite positive analyst ratings, selling BWA is recommended at current levels due to:

1. Declining industry volumes expected in key markets
2. Delayed BEV adoption impacting growth projections
3. Potential tariff pressures on margins
4. Technical indicators showing bearish momentum
5. Below-average market performance trend

Based on the provided data and recent market developments, here's the price prediction for BWA stock in 2025:

BorgWarner (BWA) is expected to trade around $32-34 by end of 2025. This projection is based on several key factors:

1. Company Guidance and Financial Outlook:

• Management forecasts 2025 revenue between $13.4-14.0 billion
• Adjusted EPS guidance of $4.05-4.40 for 2025
• Expected organic sales growth between -2% to +2%

2. Market Challenges:

• Industry headwinds from potential tariffs
• Declining auto production in North America and Europe (3-6% decline)
• Delayed BEV adoption affecting growth projections
• Pricing pressures in battery segment

3. Analyst Sentiment:

• Consensus rating is "Moderate Buy" with 9 Strong Buys, 1 Moderate Buy, and 5 Holds
• Mean price target of $39.71 (27.4% upside from current levels)
• Bank of America maintains "Buy" rating with $42 target

The stock is likely to face near-term pressure due to industry challenges but should see gradual recovery supported by:

• Strong operational efficiency (10%+ adjusted operating margins)
• Robust free cash flow generation
• Strategic focus on both traditional and electric vehicle segments

The S1 support level for BWA Stock is $28.84 ,The R1 resistant level for BWA Stock is $32.15.

As of the end of day on 2025-02-20, the price of BWA Stock was $29.93.

The target price for BWA Stock according to analyst rating is 39.42, with the highest price target at 46.00 and the lowest at 31.00. Analysts have a Strong Buy rating on BWA Stock overall.

The market cap of BWA is $6.5B.

Based on the comprehensive data analysis, BWA appears fairly valued with some potential upside. Here's the detailed analysis:

Valuation Metrics

• Current P/E ratio of 13.3x is in line with historical levels
• EV/EBITDA of 5.91x indicates attractive valuation compared to industry peers
• P/S ratio of 0.59x is near historical lows, suggesting potential undervaluation

Recent Performance & Outlook

• Q4 2024 results exceeded EPS expectations at $1.01 vs $0.96 forecast
• Revenue declined 2.4% YoY to $3.44B, slightly below estimates
• 2025 guidance projects sales of $13.4B-$14B, below 2024's $14.1B
• Operating margins remain healthy at 10.2%, at the upper end of guidance

Technical Analysis

• RSI at 42.41 indicates neutral momentum
• Trading below all major moving averages (SMA 20/60/200)
• Support level around $27.32 and resistance at $35.24
• Current price of $30.27 suggests consolidation phase

Market Sentiment

• Consensus rating is "Moderate Buy" from 15 analysts
• Mean price target of $39.71 implies 27.4% upside potential
• Bank of America maintains "Buy" rating with $42 target

Conclusion BWA is currently trading at reasonable valuations with solid fundamentals, though facing near-term headwinds from industry production declines and EV adoption delays. The stock appears fairly valued at current levels, with potential upside if automotive production stabilizes and EV transition accelerates.

BorgWarner Inc. is a global provider of technology solutions for combustion, hybrid, and electric vehicles. The Company’s products help improve vehicle performance, propulsion efficiency, stability, and air quality. The Company manufactures and sells these products worldwide, primarily to original equipment manufacturers (OEMs) of light vehicles (passenger cars, sport-utility vehicles (SUVs), vans and light trucks). Its Air Management segment’s technologies include turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, and others. Its Drivetrain & Battery Systems segment’s technologies include battery modules and systems, control modules, friction and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive (RWD), and others. Its ePropulsion segment’s technologies include power electronics, such as inverters, onboard chargers, DC/DC converters and combination boxes.

Based on the provided data and recent developments, here's a comprehensive analysis for BWA's price prediction in 2030:

Current Market Position and Recent Performance BorgWarner's stock is currently trading at $30.27, significantly below its 52-week performance compared to the broader market. The company has underperformed with only a 6.9% gain over the past year, while the S&P 500 gained 22.6%.

2030 Price Prediction Analysis Based on the company's strategic initiatives and market conditions, BWA stock is projected to reach $45-50 by 2030, representing a potential upside of 48-65% from current levels. This prediction is supported by three key factors:

1. EV Transition Strategy: BorgWarner aims to achieve more than $10 billion in yearly eProduct sales by 2027, indicating strong growth potential in the electric vehicle segment.

2. Market Position: Despite current challenges, the company maintains strong operating margins above 10% and continues to demonstrate resilience in its foundational business while transitioning to electrification.

3. Industry Outlook: The rapid expansion of the electric vehicle market is expected to follow an exponential growth trajectory, positioning BorgWarner well for long-term growth despite near-term headwinds.

BWA has a total of 39900 employees.