Beyond The Numbers: 10 Analysts Discuss BorgWarner Stock

BorgWarner BWA underwent analysis by 10 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 $38.7, a high estimate of $49.00, and a low estimate of $31.00. A decline of 6.97% from the prior average price target is evident in the current average.

Exploring Analyst Ratings: An In-Depth Overview

The standing of BorgWarner among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below 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 | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Joseph Spak |UBS |Lowers |Neutral | $31.00|$38.00 | |Kash Rangan |Goldman Sachs |Raises |Buy | $34.00|$31.00 | |Alexander Potter |Piper Sandler |Lowers |Overweight | $36.00|$43.00 | |Adam Jonas |Morgan Stanley |Lowers |Overweight | $40.00|$45.00 | |Dan Levy |Barclays |Lowers |Overweight | $42.00|$43.00 | |Chris McNally |Evercore ISI Group |Lowers |Outperform | $40.00|$43.00 | |Colin Langan |Wells Fargo |Raises |Overweight | $41.00|$40.00 | |Ryan Brinkman |JP Morgan |Lowers |Overweight | $49.00|$51.00 | |Dan Levy |Barclays |Lowers |Overweight | $43.00|$47.00 | |Kash Rangan |Goldman Sachs |Lowers |Neutral | $31.00|$35.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to BorgWarner. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of BorgWarner compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of BorgWarner's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of BorgWarner's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on BorgWarner analyst ratings.

Discovering BorgWarner: A Closer Look

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.

BorgWarner's Economic Impact: An Analysis

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Negative Revenue Trend: Examining BorgWarner's financials over 3M reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -2.36% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: BorgWarner's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -11.78%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): BorgWarner's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -6.93%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): BorgWarner's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -2.78%, the company may face hurdles in achieving optimal financial performance.

Debt Management: BorgWarner's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.79.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.

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