Assessing BorgWarner: Insights From 10 Financial Analysts

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

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 5 3 0 0
Last 30D 0 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 2 4 3 0 0
3M Ago 0 1 0 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $43.4, along with a high estimate of $51.00 and a low estimate of $36.00. Highlighting a 2.69% decrease, the current average has fallen from the previous average price target of $44.60.

price target chart

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of BorgWarner by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Ryan Brinkman JP Morgan Raises Overweight $51.00 $50.00
Dan Levy Barclays Raises Overweight $47.00 $45.00
Colin Langan Wells Fargo Lowers Overweight $42.00 $44.00
David Leiker Baird Raises Neutral $39.00 $38.00
John Murphy B of A Securities Lowers Buy $45.00 $50.00
Ryan Brinkman JP Morgan Lowers Overweight $50.00 $52.00
Itay Michaeli Citigroup Lowers Neutral $36.00 $41.00
David Leiker Baird Lowers Neutral $38.00 $40.00
Colin Langan UBS Raises Buy $42.00 $41.00
Colin Langan Wells Fargo Lowers Overweight $44.00 $45.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to BorgWarner. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of BorgWarner compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing 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.

All You Need to Know About BorgWarner

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.

Understanding the Numbers: BorgWarner's Finances

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Negative Revenue Trend: Examining BorgWarner's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -1.85% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.41%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): BorgWarner's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.08%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): BorgWarner's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.15% 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 0.64, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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

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