BorgWarner (NYSE:BWA) Given New $89.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley cut BorgWarner’s price target to $89 from $95 but maintained an “overweight” rating, implying roughly 74% upside from the reported $51.08 share price.
• Analyst sentiment remains positive overall: BorgWarner has a “Moderate Buy” consensus rating, with 11 Buy ratings and three Holds and an average price target of $79.40.
• BorgWarner beat quarterly EPS expectations with $1.39 versus $1.25, although revenue fell 2.9% year over year to $3.49 billion. The company also authorized a $1 billion share-repurchase program, covering up to 7.7% of outstanding shares.

BorgWarner (NYSE:BWA - Get Free Report) had its price target decreased by analysts at Morgan Stanley from $95.00 to $89.00 in a note issued to investors on Friday, Benzinga reports. The firm currently has an "overweight" rating on the auto parts company's stock. Morgan Stanley's target price would suggest a potential upside of 74.24% from the stock's current price.

Several other research firms have also weighed in on BWA. JPMorgan Chase & Co. boosted their target price on BorgWarner from $75.00 to $85.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. TD Cowen upped their target price on shares of BorgWarner from $67.00 to $68.00 and gave the company a "hold" rating in a research note on Thursday, August 6th. Robert W. Baird set a $79.00 target price on shares of BorgWarner in a research note on Thursday, August 6th. Weiss Ratings reissued a "hold (c+)" rating on shares of BorgWarner in a research note on Friday, September 25th. Finally, Bank of America upgraded BorgWarner from a "neutral" rating to a "buy" rating and raised their price target for the stock from $78.00 to $85.00 in a research report on Thursday, October 15th. Eleven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, BorgWarner currently has a consensus rating of "Moderate Buy" and an average target price of $79.40.

BorgWarner Price Performance

BWA stock traded down $2.22 during trading on Friday, hitting $51.08. The company had a trading volume of 1,703,221 shares, compared to its average volume of 2,748,001. The business has a 50 day moving average of $61.57 and a 200 day moving average of $60.52. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67. The firm has a market capitalization of $10.40 billion, a price-to-earnings ratio of 25.53, a P/E/G ratio of 0.82 and a beta of 1.16. BorgWarner has a fifty-two week low of $40.73 and a fifty-two week high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The auto parts company reported $1.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.14. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%. The company had revenue of $3.49 billion for the quarter, compared to analysts' expectations of $3.50 billion. During the same quarter in the prior year, the company earned $1.24 earnings per share. The firm's revenue was down 2.9% on a year-over-year basis. As a group, research analysts predict that BorgWarner will post 5.19 earnings per share for the current year.

BorgWarner announced that its board has authorized a share repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $1 billion in shares. This buyback authorization authorizes the auto parts company to buy up to 7.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insider Activity at BorgWarner

In other BorgWarner news, CAO Amy Kulikowski sold 2,900 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the sale, the chief accounting officer owned 9,725 shares of the company's stock, valued at approximately $667,135. This trade represents a 22.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Michael Hanley sold 5,000 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $65.51, for a total transaction of $327,550.00. Following the completion of the transaction, the director directly owned 34,313 shares of the company's stock, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.76% of the stock is currently owned by insiders.

Hedge Funds Weigh In On BorgWarner

A number of large investors have recently modified their holdings of the company. Bank Julius Baer & Co. Ltd Zurich lifted its stake in BorgWarner by 0.4% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 137,002 shares of the auto parts company's stock worth $8,235,000 after acquiring an additional 538 shares during the period. Sumitomo Mitsui Trust Group Inc. raised its position in BorgWarner by 16.0% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 33,878 shares of the auto parts company's stock worth $2,036,000 after buying an additional 4,672 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in BorgWarner in the third quarter valued at about $105,000. Vise Technologies Inc. purchased a new position in BorgWarner during the third quarter valued at $1,222,000. Finally, Parcion Private Wealth LLC increased its holdings in BorgWarner by 4.3% in the 3rd quarter. Parcion Private Wealth LLC now owns 9,172 shares of the auto parts company's stock worth $551,000 after acquiring an additional 379 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors.

BorgWarner News Roundup

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Adjusted EPS exceeded expectations. BorgWarner reported third-quarter adjusted earnings of $1.39 per share, ahead of consensus estimates near $1.24-$1.25 and up from $1.24 a year earlier. Cost reductions, share repurchases and improved profitability supported the earnings performance. BorgWarner Reports Strong Third Quarter 2026 Results
• Positive Sentiment: Electrification and turbocharger wins strengthen the long-term growth story. BorgWarner announced nine business awards, including high-voltage inverter contracts, multiple eMotor awards in China and three turbocharger awards with a global powertrain manufacturer. A silicon-carbide supply agreement with Wolfspeed also supports the company’s inverter strategy. High-Voltage Inverter Supply Agreement
• Neutral Sentiment: Analyst sentiment remains constructive but less bullish. Royal Bank of Canada lowered its price target from $87 to $75 while maintaining an “outperform” rating, implying substantial potential appreciation from recent trading levels. The reduction reflects more cautious near-term expectations rather than a change to its positive rating. RBC Lowers BorgWarner Price Target
• Negative Sentiment: Revenue and volumes remain the key weaknesses. Third-quarter revenue of $3.49 billion was slightly below estimates and declined 2.9% year over year, primarily reflecting lower production volumes. Reports that BorgWarner reduced parts of its 2026 outlook are likely offsetting the earnings beat and raising concerns about demand and auto-sector conditions. BorgWarner Q3 Results and Revised Outlook

About BorgWarner

BorgWarner Inc NYSE: BWA is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.

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