Assessing BorgWarner: Insights From 11 Financial Analysts

11 analysts have expressed a variety of opinions on BorgWarner BWA over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

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

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $42.64, a high estimate of $50.00, and a low estimate of $36.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 0.84%.

price target chart

Investigating Analyst Ratings: An Elaborate Study

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.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
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
Itay Michaeli Citigroup Raises Neutral $41.00 $33.00
Dan Levy Barclays Raises Overweight $45.00 $44.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to BorgWarner. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of BorgWarner compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for BorgWarner's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

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.

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 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.

Financial Insights: BorgWarner

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

Revenue Growth: BorgWarner's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 6.27%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher 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 5.73%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): BorgWarner's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.53% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): BorgWarner's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.44%, the company showcases efficient use of assets and strong financial health.

Debt Management: BorgWarner's debt-to-equity ratio is below the industry average at 0.66, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

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.

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.

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

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