BorgWarner (NYSE:BWA) Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded BorgWarner to “Buy” from “Hold.” The broader analyst consensus is “Moderate Buy,” with 11 Buy ratings, three Holds, and an average price target of $79.33 versus the reported share price of $51.70.
• BorgWarner reported quarterly adjusted EPS of $1.39, beating the $1.25 consensus estimate, while revenue of $3.49 billion fell 2.9% year over year and slightly missed expectations.
• The company authorized a $1 billion stock-repurchase program, allowing it to buy back up to 7.7% of outstanding shares, as it continues expanding its electrification business through new awards.

BorgWarner (NYSE:BWA - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Sunday, Wall Street Zen reports.

A number of other analysts have also recently weighed in on the company. JPMorgan Chase & Co. raised their price target on BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a research note on Monday, August 10th. Barclays upped their price objective on BorgWarner from $83.00 to $85.00 and gave the stock an "overweight" rating in a research report on Monday, August 10th. TD Cowen dropped their price objective on BorgWarner from $68.00 to $67.00 and set a "hold" rating on the stock in a report on Friday. Morgan Stanley cut their target price on BorgWarner from $95.00 to $89.00 and set an "overweight" rating on the stock in a research report on Friday. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 target price on BorgWarner in a research note on Thursday, August 6th. Eleven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $79.33.

BorgWarner Stock Down 3.0%

Shares of NYSE:BWA opened at $51.70 on Friday. BorgWarner has a fifty-two week low of $40.73 and a fifty-two week high of $78.82. The firm's 50 day moving average price is $61.31 and its 200 day moving average price is $60.54. The company has a quick ratio of 1.76, a current ratio of 1.41 and a debt-to-equity ratio of 0.32. The stock has a market cap of $10.53 billion, a price-to-earnings ratio of 22.00, a price-to-earnings-growth ratio of 0.76 and a beta of 1.16.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The auto parts company reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.25 by $0.14. The business had revenue of $3.49 billion during the quarter, compared to analysts' expectations of $3.50 billion. BorgWarner had a net margin of 3.36% and a return on equity of 19.61%. The company's revenue for the quarter was down 2.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.24 EPS. As a group, equities research analysts predict that BorgWarner will post 5.27 earnings per share for the current fiscal year.

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

Insider Activity at BorgWarner

In other BorgWarner news, Director Michael S. Hanley sold 5,000 shares of the business's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $65.51, for a total value of $327,550.00. Following the completion of the sale, the director owned 34,313 shares in the company, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Rajesh Kalathur acquired 7,407 shares of the firm's stock in a transaction dated Wednesday, August 19th. The stock was purchased at an average cost of $67.59 per share, with a total value of $500,639.13. Following the completion of the acquisition, the director directly owned 7,407 shares of the company's stock, valued at approximately $500,639.13. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.76% of the company's stock.

Institutional Trading of BorgWarner

Hedge funds have recently made changes to their positions in the company. Chicago Partners Investment Group LLC grew its position in BorgWarner by 53.9% during the third quarter. Chicago Partners Investment Group LLC now owns 19,740 shares of the auto parts company's stock worth $1,085,000 after buying an additional 6,914 shares in the last quarter. Richardson Financial Services Inc. lifted its holdings in shares of BorgWarner by 39.6% in the third quarter. Richardson Financial Services Inc. now owns 1,737 shares of the auto parts company's stock worth $104,000 after acquiring an additional 493 shares during the last quarter. Bank Julius Baer & Co. Ltd Zurich grew its holdings in shares of BorgWarner by 0.4% during the 3rd quarter. Bank Julius Baer & Co. Ltd Zurich now owns 137,002 shares of the auto parts company's stock valued at $8,235,000 after purchasing an additional 538 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its position in BorgWarner by 16.0% during 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 purchasing an additional 4,672 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in BorgWarner in the 3rd quarter valued at approximately $105,000. Institutional investors and hedge funds own 95.67% of the company's stock.

Trending Headlines about BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: BorgWarner reported third-quarter adjusted EPS of $1.39, above the $1.24–$1.26 analyst consensus and up from $1.24 a year earlier. The company also increased its 2026 adjusted EPS guidance, highlighting the impact of cost controls and operational improvements. BorgWarner Reports Strong Third Quarter 2026 Results
• Positive Sentiment: The company announced nine business awards, including high-voltage inverter and eMotor programs, supporting its strategy to expand in electrification and build longer-term profitable growth. High-Voltage Inverter Supply Agreement
• Positive Sentiment: Despite target reductions, Morgan Stanley maintained an overweight rating with an $89 target, while RBC retained an outperform rating with a $75 target—both implying substantial potential upside from the reported share price. Morgan Stanley Ratings
• Neutral Sentiment: TD Cowen lowered its target to $67 and kept a hold rating, indicating analysts see valuation upside but remain cautious about the near-term outlook. TD Cowen Ratings
• Negative Sentiment: Third-quarter revenue was $3.49 billion, slightly below expectations and down 2.9% year over year, reflecting lower customer volumes. BorgWarner also reduced elements of its 2026 outlook, raising concerns about demand and the pace of recovery.
• Negative Sentiment: Morgan Stanley, RBC, and TD Cowen all reduced their price targets, signaling increased caution even though each firm’s revised target remains above the current trading level. RBC Ratings

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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