Goldman Downgrades Borg Warner (BWA)

Goldman Sachs is downgrading shares of BorgWarner Inc. BWA to Sell from Neutral. In a note to clients, Goldman writes, "We are upgrading Magna to Neutral from Sell, as it has shown much better leverage coming out of the downturn than we projected and we expect its strong incremental margin performance to continue driven by operating leverage, higher utilization at Magna Steyr, and operational improvements in Europe. Our downgrade of BWA to Sell is relative – driven by our expectation for limited additional multiple expansion versus peers and a preference for cyclical names, which we see benefiting more from improving auto industry fundamentals." Shares of BWA are down 62 cents in pre-market trading to $69.80, a loss of 0.88%.