Navigating 5 Analyst Ratings For BorgWarner

5 analysts have shared their evaluations of BorgWarner BWA during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $44.4, a high estimate of $52.00, and a low estimate of $39.00. Highlighting a 8.64% decrease, the current average has fallen from the previous average price target of $48.60.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of BorgWarner among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to BorgWarner. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of BorgWarner compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into BorgWarner's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on BorgWarner analyst ratings.

Get to Know BorgWarner Better

BorgWarner is a Tier I auto-parts supplier with three operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, and cabin heaters. The drivetrain and battery systems group produces automatic transmission components, torque management products, battery heaters, battery charging, and battery modules. The e-propulsion segment makes e-motors, power electronics, and software and control modules. The company's largest customers are Ford and Volkswagen at 13% and 8% of 2022 revenue, respectively. Geographically, Europe accounted for 34% of 2022 revenue, while Asia and North America were 32% each.

Financial Insights: BorgWarner

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: BorgWarner displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 12.28%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: BorgWarner's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.38%, the company may face hurdles in effective cost management.

Return on Equity (ROE): BorgWarner's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.75%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.32%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.67.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.