Jefferies Reports On BorgWarner's 1Q Results

Jefferies is maintaining its $81 price target and its Hold rating on BorgWarner Inc. BWA following a strong quarter. Says Jefferies, in the report, “1Q was a solid quarter for BWA. We increased our estimates based on revenue and Engine segment margins, but also note that purchase accounting for the Haldex acquisition will preclude a snap-back in Drivetrain margins. At 8.8x forward EBITDA, we believe the stock is fairly valued. However, we'll gladly step up when the 12-month opportunity looks compelling enough. In the interim, we reiterate our Hold rating based on valuation.” BWA closed yesterday at $76.57.