In the last three months, 8 analysts have published ratings on BorgWarner BWA, offering a diverse range of perspectives from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 5 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 3 | 2 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Analysts have set 12-month price targets for BorgWarner, revealing an average target of $42.38, a high estimate of $45.00, and a low estimate of $40.00. Surpassing the previous average price target of $39.50, the current average has increased by 7.29%.
Analyzing Analyst Ratings: A Detailed Breakdown
In examining recent analyst actions, we gain insights into how financial experts perceive BorgWarner. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Colin Langan | Wells Fargo | Lowers | Overweight | $44.00 | $45.00 |
| Itay Michaeli | Citigroup | Raises | Neutral | $41.00 | $33.00 |
| Dan Levy | Barclays | Raises | Overweight | $45.00 | $44.00 |
| Jeffrey Osborne | TD Cowen | Raises | Buy | $40.00 | $36.00 |
| Colin Langan | Wells Fargo | Raises | Overweight | $45.00 | $43.00 |
| Noah Kaye | Oppenheimer | Raises | Outperform | $40.00 | $39.00 |
| David Leiker | Baird | Raises | Neutral | $40.00 | $36.00 |
| Dan Levy | Barclays | Raises | Overweight | $44.00 | $40.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to BorgWarner. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of BorgWarner compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of BorgWarner's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of BorgWarner's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on BorgWarner analyst ratings.
Delving into BorgWarner's Background
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 14% and 11% of 2023 revenue, respectively. Geographically, Europe accounted for 36% of 2023 revenue, while Asia and North America were 34% and 29% apiece.
BorgWarner: A Financial Overview
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: BorgWarner's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 6.27%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: BorgWarner's net margin is impressive, surpassing industry averages. With a net margin of 5.73%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): BorgWarner's ROE excels beyond industry benchmarks, reaching 3.53%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): BorgWarner's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.44% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: BorgWarner's debt-to-equity ratio is below the industry average. With a ratio of 0.66, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Analyst Ratings: What Are They?
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.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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