BorgWarner Initiated with a Buy at Oppenheimer

By Austin Angelo

Oppenheimer analyst Noah Kaye initiated coverage with a Buy rating on BorgWarner (NYSE: BWA) today and set a price target of $63. The company’s shares opened today at $54.05, close to its 52-week high of $55.86.

Kaye noted:

“We view BorgWarner (BWA) as a differentiated technology solutions provider for efficient vehicle propulsion. As the global auto industry evolves to meet increasingly stringent emissions regulations, we expect BorgWarner to benefit from accelerating vehicle electrification, continued runway on turbochargers (close No. 2 player with ~27% market share), and overall strong position (20-25% market share) across product lines for internal combustion engines. We are initiating coverage of BWA with an Outperform rating and a 12- to 18-month price target of $63.”

According to, Kaye is a 4-star analyst with an average return of 7.1% and a 60.8% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, Westport Innov, and AO Smith Corp.

BorgWarner has an analyst consensus of Moderate Buy, with a price target consensus of $59.71.

Based on BorgWarner’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $2.41 billion and quarterly net profit of $185 million. In comparison, last year the company earned revenue of $2.21 billion and had a net profit of $83.3 million.

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BorgWarner, Inc. operates as a clean and efficient technology company. It offers solutions for combustion, hybrid and electric vehicles. Its products improve vehicle performance, propulsion efficiency, stability and air quality. The company also manufactures and sells products to tier one vehicle systems suppliers.