Breaking Down BorgWarner: 5 Analysts Share Their Views

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Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on BorgWarner BWA in the last three months.

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

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

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $38.8, a high estimate of $43.00, and a low estimate of $31.00. Highlighting a 4.43% decrease, the current average has fallen from the previous average price target of $40.60.

price target chart

Interpreting Analyst Ratings: A Closer Look

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
Dan Levy Barclays Lowers Overweight $43.00 $47.00
Kash Rangan Goldman Sachs Lowers Neutral $31.00 $35.00
Colin Langan Wells Fargo Lowers Overweight $40.00 $42.00
Ronald Jewsikow Guggenheim Maintains Buy $41.00 $41.00
Edison Yu Deutsche Bank Raises Hold $39.00 $38.00

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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of BorgWarner compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of BorgWarner's stock. This analysis 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.

Get to Know BorgWarner Better

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.

BorgWarner: A Financial Overview

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Negative Revenue Trend: Examining BorgWarner's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -4.78% in revenue growth, reflecting a decrease in 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 net margin is impressive, surpassing industry averages. With a net margin of 6.78%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.82%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.6%, the company showcases effective utilization of assets.

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.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and 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.

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

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