Royal Bank Of Canada Issues Pessimistic Forecast for BorgWarner (NYSE:BWA) Stock Price

Key Points

• Royal Bank of Canada cut BorgWarner’s price target from $87 to $75 while maintaining an “outperform” rating, implying roughly 46% upside from the reported $51.43 share price.
• BorgWarner reported quarterly EPS of $1.39, beating expectations, but revenue fell 2.9% year over year to $3.49 billion. Analysts maintain a “Moderate Buy” consensus with an average target price of $78.20.
• The company authorized a $1 billion share-repurchase program, covering up to 7.7% of shares, while investors monitor its electrification investments and continued pressure on automotive volumes and revenue.

BorgWarner (NYSE:BWA - Get Free Report) had its price target reduced by research analysts at Royal Bank Of Canada from $87.00 to $75.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has an "outperform" rating on the auto parts company's stock. Royal Bank Of Canada's price target indicates a potential upside of 45.83% from the company's current price.

Other equities analysts have also recently issued research reports about the stock. Robert W. Baird set a $79.00 target price on shares of BorgWarner in a research report on Thursday, August 6th. Morgan Stanley increased their price target on shares of BorgWarner from $67.00 to $71.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 6th. UBS Group reduced their price target on BorgWarner from $95.00 to $91.00 and set a "buy" rating on the stock in a research note on Wednesday, October 7th. Bank of America upgraded BorgWarner from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $78.00 to $85.00 in a report on Thursday, October 15th. Finally, JPMorgan Chase & Co. raised their price objective on BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a research report on Monday, August 10th. Ten research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, BorgWarner presently has a consensus rating of "Moderate Buy" and a consensus target price of $78.20.

BorgWarner Stock Down 3.5%

BWA stock traded down $1.87 during midday trading on Friday, reaching $51.43. 634,498 shares of the company's stock traded hands, compared to its average volume of 2,743,941. BorgWarner has a 52 week low of $40.73 and a 52 week high of $78.82. The company has a market cap of $10.47 billion, a price-to-earnings ratio of 25.74, a P/E/G ratio of 0.82 and a beta of 1.16. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. The firm's fifty day moving average price is $61.57 and its 200-day moving average price is $60.52.

BorgWarner (NYSE:BWA - Get Free Report) last announced its 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 firm had revenue of $3.49 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same period last year, the firm posted $1.24 EPS. The business's revenue was down 2.9% compared to the same quarter last year. As a group, sell-side analysts forecast that BorgWarner will post 5.19 earnings per share for the current fiscal year.

BorgWarner declared that its Board of Directors has authorized a stock 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 repurchase up to 7.7% of its shares through open market purchases. Stock buyback plans are usually a sign that the company's management believes its shares are undervalued.

Insider Transactions at BorgWarner

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

Institutional Investors Weigh In On BorgWarner

A number of institutional investors have recently made changes to their positions in the company. Clearstead Trust LLC bought a new position in BorgWarner in the second quarter worth approximately $28,000. Ceredex Value Advisors LLC purchased a new position in BorgWarner in the second quarter worth $40,000. William Mack & Associates Inc. acquired a new position in BorgWarner during the 3rd quarter valued at about $46,000. Fiduciary Financial Advisors purchased a new position in shares of BorgWarner in the 2nd quarter valued at approximately $49,000. Finally, Cedar Mountain Advisors LLC acquired a new stake in shares of BorgWarner during the first quarter worth $55,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

Key BorgWarner News

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 the $1.24–$1.25 consensus and up from $1.24 a year earlier. Cost reductions and share repurchases helped support profitability. BorgWarner Tops Q3 Earnings Estimates
• Positive Sentiment: Electrification-related awards strengthen the growth outlook. The company announced nine awards across its portfolio, including high-voltage inverter supply agreements and multiple eMotor awards in China. It also secured three turbocharger business awards with a global powertrain manufacturer, supporting longer-term revenue opportunities. BorgWarner Third-Quarter Results and Awards
• Positive Sentiment: Management raised 2026 adjusted EPS guidance. The guidance increase indicates that cost controls, portfolio actions and improving profitability are helping offset challenges in the vehicle market. BorgWarner Blows Past Q3 Forecasts
• Neutral Sentiment: The earnings call pointed to a profitable transition. Investors are assessing whether BorgWarner’s shift toward electrification and higher-value products can produce durable growth as traditional powertrain demand changes. BorgWarner Earnings Call Signals Profitable Transition
• Negative Sentiment: Revenue and volumes remain under pressure. Third-quarter revenue was $3.49 billion, slightly below the $3.50 billion estimate and down 2.9% year over year, with lower volumes weighing on sales. Reports also described a reduction to parts of the 2026 outlook, creating uncertainty despite the higher EPS guidance. 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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