BorgWarner (NYSE:BWA) Raised to "Neutral" at UBS Group

Key Points

• UBS upgraded BorgWarner from a "sell" to a "neutral" rating and set a $55 price target, implying roughly a 4.3% upside from the prior close.
• Several other brokers raised targets (Wells Fargo $75, Robert W. Baird $76, Barclays $70), and the consensus is a Moderate Buy with an average price target of $59.14.
• Earnings beat: BorgWarner reported $1.35 EPS vs. $1.16 expected and $3.57B revenue vs. $3.49B, while guiding FY2026 EPS to $5.00–$5.20 (sell‑side average for the current year is ~4.28).

BorgWarner (NYSE:BWA - Get Free Report) was upgraded by UBS Group from a "sell" rating to a "neutral" rating in a research note issued on Friday, Marketbeat reports. The firm currently has a $55.00 target price on the auto parts company's stock. UBS Group's price target would suggest a potential upside of 4.30% from the stock's previous close.

A number of other brokerages have also recently issued reports on BWA. Wells Fargo & Company upped their target price on BorgWarner from $52.00 to $75.00 and gave the company an "overweight" rating in a research report on Thursday, February 12th. Robert W. Baird set a $76.00 price objective on BorgWarner in a research note on Thursday, February 12th. New Street Research set a $66.00 price objective on BorgWarner in a report on Thursday, February 12th. Morgan Stanley set a $60.00 target price on shares of BorgWarner in a research report on Thursday, February 12th. Finally, Barclays lifted their target price on shares of BorgWarner from $55.00 to $70.00 and gave the company an "overweight" rating in a report on Thursday, February 12th. Eight research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $59.14.

BorgWarner Trading Down 0.1%

NYSE BWA opened at $52.73 on Friday. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.07 and a quick ratio of 1.70. The firm's fifty day moving average price is $51.94 and its 200 day moving average price is $46.49. The company has a market capitalization of $10.92 billion, a price-to-earnings ratio of 42.18, a price-to-earnings-growth ratio of 1.06 and a beta of 1.04. BorgWarner has a 12 month low of $24.40 and a 12 month high of $70.08.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The auto parts company reported $1.35 earnings per share for the quarter, beating analysts' consensus estimates of $1.16 by $0.19. BorgWarner had a net margin of 1.93% and a return on equity of 17.89%. The firm had revenue of $3.57 billion during the quarter, compared to analysts' expectations of $3.49 billion. During the same period in the previous year, the company earned $1.01 earnings per share. BorgWarner's quarterly revenue was up 3.9% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, sell-side analysts expect that BorgWarner will post 4.28 earnings per share for the current fiscal year.

Insider Activity at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 3,500 shares of the business's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $63.26, for a total value of $221,410.00. Following the transaction, the vice president directly owned 68,809 shares of the company's stock, valued at approximately $4,352,857.34. The trade was a 4.84% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Tania Wingfield sold 17,867 shares of the company's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $63.43, for a total transaction of $1,133,303.81. Following the transaction, the executive vice president owned 45,429 shares of the company's stock, valued at approximately $2,881,561.47. The trade was a 28.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 49,550 shares of company stock worth $3,156,141 in the last three months. Insiders own 0.45% of the company's stock.

Institutional Investors Weigh In On BorgWarner

A number of hedge funds have recently added to or reduced their stakes in BWA. Acadian Asset Management LLC increased its position in BorgWarner by 23.7% during the 1st quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company's stock worth $257,000 after purchasing an additional 1,723 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of BorgWarner in the 2nd quarter valued at approximately $339,000. Envestnet Asset Management Inc. boosted its stake in shares of BorgWarner by 0.7% in the second quarter. Envestnet Asset Management Inc. now owns 276,199 shares of the auto parts company's stock valued at $9,247,000 after buying an additional 2,054 shares in the last quarter. Hantz Financial Services Inc. grew its holdings in BorgWarner by 111.9% during the second quarter. Hantz Financial Services Inc. now owns 1,108 shares of the auto parts company's stock worth $37,000 after acquiring an additional 585 shares during the period. Finally, Assetmark Inc. raised its position in BorgWarner by 81.8% in the second quarter. Assetmark Inc. now owns 809 shares of the auto parts company's stock worth $27,000 after acquiring an additional 364 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

More BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Zacks Research materially raised earnings estimates across multiple quarters and years for BorgWarner, including lifting FY2026 to $5.03 from $4.66 and publishing FY2028 of $5.93 — plus higher quarterly EPS forecasts for Q1–Q4 2026–2027. These upward revisions imply improving analyst confidence in near‑term profitability and could support further upward revisions in consensus estimates and the stock if results/guide match.
• Positive Sentiment: Wall Street consensus price-targets imply sizeable upside (Zacks story highlights ~27.7% potential). That kind of headline can attract investor attention and buying interest if estimate momentum continues. Wall Street Analysts Think BorgWarner (BWA) Could Surge 27.69%
• Neutral Sentiment: Bank of America recently initiated coverage with a "neutral" rating. That suggests no strong buy-side endorsement from a major bank — may limit near-term upside from institutional re-rating until fundamentals or guidance improve.
• Negative Sentiment: MarketWatch flagged that BorgWarner underperformed its competitors in recent trading, which could indicate sector rotation away from the name or investor concern about company-specific execution vs. peers. Continued relative weakness may pressure sentiment even amid estimate upgrades. BorgWarner Inc. stock underperforms Tuesday when compared to competitors

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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