Where BorgWarner Stands With Analysts

BorgWarner BWA underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for BorgWarner, presenting an average target of $40.83, a high estimate of $49.00, and a low estimate of $31.00. A decline of 4.31% from the prior average price target is evident in the current average.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive BorgWarner is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to BorgWarner. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of BorgWarner compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of BorgWarner's stock. This comparison reveals trends in analysts' expectations over time.

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 one supplier of turbo and thermal management technologies, drivetrain systems, powerdrive systems, and battery and charging systems mostly to automotive original equipment manufacturers. Its products aim to move a vehicle with as few electrons as possible, resulting in cleaner, cost-optimized, and more-efficient vehicles. Foundational products, the combustion vehicle business, contributes more than 80% to group revenue while BorgWarner transitions to becoming an electric vehicle-centric parts supplier (e-business). In 2023, 25% of the company's revenue was sourced from Volkswagen and Ford. Revenue is well diversified geographically, with approximately a third each generated in North America, Europe, and Asia.

A Deep Dive into BorgWarner's Financials

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Decline in Revenue: Over the 3 months period, BorgWarner faced challenges, resulting in a decline of approximately -4.78% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's 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: BorgWarner's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 6.78%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): BorgWarner's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.82%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): BorgWarner's ROA excels beyond industry benchmarks, reaching 1.6%. This signifies efficient management of assets and strong financial health.

Debt Management: BorgWarner's debt-to-equity ratio is below the industry average. With a ratio of 0.77, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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