BorgWarner (BWA) Received its Third Buy in a Row

By Carrie Williams

After Robert W. Baird and Wells Fargo gave BorgWarner (NYSE: BWA) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Noah Kaye maintained a Buy rating on BorgWarner today and set a price target of $51. The company’s shares closed yesterday at $38.82.

Kaye said:

“BWA reports Thursday and remains a Top Pick for us in the transportation space. Per our post-Investor Day note (here), we see (1) business momentum supporting 5% sustainable organic market outgrowth and (2) breadth of product/system expertise positioning BorgWarner to exceed investors’ expectations on electrification market share. While we are adjusting estimates to reflect macro weakness in light vehicle production and the divestiture of the Thermostats business, we believe BWA should outperform peers through the cycle and see execution on margin/FCF trajectory as a source of upside.”

According to TipRanks.com, Kaye is a 4-star analyst with an average return of 6.0% and a 55.2% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, Caterpillar, and Twin Disc.

BorgWarner has an analyst consensus of Moderate Buy, with a price target consensus of $47.50, which is a 22.4% upside from current levels. In a report issued on January 28, Wells Fargo also maintained a Buy rating on the stock with a $53 price target.

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BorgWarner’s market cap is currently $8.09B and has a P/E ratio of 14.69. The company has a Price to Book ratio of 1.99.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is neutral on the stock.

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BorgWarner, Inc. engages in the provision of technology solutions for combustion, hybrid, and electric vehicles. It operates through Engine and Drivetrain segments. The Engine segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance.