Analyst Ratings For BorgWarner

In the latest quarter, 6 analysts provided ratings for BorgWarner BWA, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $41.96, along with a high estimate of $45.00 and a low estimate of $36.00. Observing a downward trend, the current average is 11.1% lower than the prior average price target of $47.20.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of BorgWarner's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of BorgWarner's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on BorgWarner analyst ratings.

Unveiling the Story Behind 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 13% and 8% of 2022 revenue, respectively. Geographically, Europe accounted for 34% of 2022 revenue, while Asia and North America were 32% each.

Key Indicators: BorgWarner's Financial Health

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

Positive Revenue Trend: Examining BorgWarner's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.28% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: BorgWarner's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.38%, the company may face hurdles in effective cost management.

Return on Equity (ROE): BorgWarner's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.75%, 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 0.32%, the company may face hurdles in achieving optimal financial performance.

Debt Management: BorgWarner's debt-to-equity ratio is below the industry average at 0.67, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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