9 analysts have shared their evaluations of BorgWarner (NYSE:BWA) during the recent three months, expressing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 4 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 3 | 2 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $41.67, a high estimate of $45.00, and a low estimate of $38.00. This upward trend is apparent, with the current average reflecting a 5.04% increase from the previous average price target of $39.67.
Understanding Analyst Ratings: A Comprehensive Breakdown
The perception of BorgWarner by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| David Leiker | Baird | Lowers | Neutral | $38.00 | $40.00 |
| Colin Langan | UBS | Raises | Buy | $42.00 | $41.00 |
| Colin Langan | Wells Fargo | Lowers | Overweight | $44.00 | $45.00 |
| Itay Michaeli | Citigroup | Raises | Neutral | $41.00 | $33.00 |
| Dan Levy | Barclays | Raises | Overweight | $45.00 | $44.00 |
| Jeffrey Osborne | TD Cowen | Raises | Buy | $40.00 | $36.00 |
| Colin Langan | Wells Fargo | Raises | Overweight | $45.00 | $43.00 |
| Noah Kaye | Oppenheimer | Raises | Outperform | $40.00 | $39.00 |
| David Leiker | Baird | Raises | Neutral | $40.00 | $36.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to BorgWarner. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of BorgWarner compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for BorgWarner's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
To gain a panoramic view of BorgWarner's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on BorgWarner analyst ratings.
Delving into BorgWarner's Background
BorgWarner is a Tier I auto-parts supplier with three operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, and cabin heaters. The drivetrain and battery systems group produces automatic transmission components, torque management products, battery heaters, battery charging, and battery modules. The e-propulsion segment makes e-motors, power electronics, and software and control modules. The company's largest customers are Ford and Volkswagen at 14% and 11% of 2023 revenue, respectively. Geographically, Europe accounted for 36% of 2023 revenue, while Asia and North America were 34% and 29% apiece.
A Deep Dive into BorgWarner's Financials
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: BorgWarner displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 6.27%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Net Margin: BorgWarner's net margin is impressive, surpassing industry averages. With a net margin of 5.73%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): BorgWarner's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.53%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.44%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.66.
The Significance of Analyst Ratings Explained
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.