Evercore ISI Issues Positive Forecast for BorgWarner (NYSE:BWA) Stock Price

Key Points

• Evercore ISI upgraded its price target for BorgWarner from $42.00 to $50.00, indicating a potential upside of 21.42% from the stock's previous close, while maintaining an "outperform" rating.
• BorgWarner's recent quarterly earnings beat estimates, reporting $1.21 EPS against a consensus estimate of $1.06, with a revenue of $3.64 billion surpassing expectations.
• The company announced a $1.00 billion share buyback plan, signaling confidence in its stock's valuation and allowing for repurchase of up to 13.2% of its shares.

BorgWarner (NYSE:BWA - Get Free Report) had its price target increased by equities research analysts at Evercore ISI from $42.00 to $50.00 in a research note issued to investors on Monday,Benzinga reports. The firm currently has an "outperform" rating on the auto parts company's stock. Evercore ISI's price objective points to a potential upside of 21.42% from the stock's previous close.

Other equities analysts have also recently issued reports about the company. Robert W. Baird upgraded BorgWarner from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $41.00 to $52.00 in a report on Wednesday, September 3rd. JPMorgan Chase & Co. upped their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Zacks Research upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Friday, September 12th. The Goldman Sachs Group raised their price objective on shares of BorgWarner from $45.00 to $52.00 and gave the stock a "buy" rating in a research note on Monday, September 29th. Finally, Morgan Stanley boosted their target price on shares of BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research note on Tuesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $44.64.

BorgWarner Stock Down 1.1%

BWA stock opened at $41.18 on Monday. The firm's 50-day moving average is $42.56 and its two-hundred day moving average is $35.54. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The company has a market capitalization of $8.91 billion, a price-to-earnings ratio of 43.81, a price-to-earnings-growth ratio of 1.36 and a beta of 1.09. BorgWarner has a 52 week low of $24.40 and a 52 week high of $44.97.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The company had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The company's quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, analysts forecast that BorgWarner will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its board has authorized a share buyback plan on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 5,000 shares of the company's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total transaction of $202,500.00. Following the transaction, the vice president owned 229,040 shares in the company, valued at approximately $9,276,120. This trade represents a 2.14% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 31,272 shares of company stock worth $1,263,318. Insiders own 0.63% of the company's stock.

Hedge Funds Weigh In On BorgWarner

Several hedge funds have recently added to or reduced their stakes in BWA. Farther Finance Advisors LLC raised its holdings in BorgWarner by 26.1% during the 1st quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock worth $56,000 after purchasing an additional 407 shares during the last quarter. CX Institutional acquired a new position in BorgWarner in the first quarter valued at about $98,000. Blackston Financial Advisory Group LLC boosted its holdings in BorgWarner by 20.3% during the first quarter. Blackston Financial Advisory Group LLC now owns 7,705 shares of the auto parts company's stock worth $221,000 after buying an additional 1,301 shares during the last quarter. State of Alaska Department of Revenue grew its position in shares of BorgWarner by 185.3% during the 1st quarter. State of Alaska Department of Revenue now owns 148,170 shares of the auto parts company's stock worth $4,244,000 after buying an additional 96,235 shares during the period. Finally, Global X Japan Co. Ltd. increased its stake in shares of BorgWarner by 133.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after acquiring an additional 523 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

BorgWarner Company Profile

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.

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