BorgWarner (BWA) Raised to “Buy” at Zacks Investment Research

BorgWarner (NYSE:BWA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The firm presently has a $58.00 price objective on the auto parts company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 8.27% from the stock’s current price.

According to Zacks, “BorgWarner has been introducing new products and collaborates with other companies to showcase its products. In March, the company launched its Electro-Mechanical On-Demand transfer case that will cater different vehicle types, ranging from heavy-duty pickup trucks to small sport utility vehicles. Further, to expand its product offerings it also acquires businesses. In Nov 2017, it acquired Sevcon that offers electrification technologies for vehicles enabling it to widen its electronics capabilities for combustion, hybrid and electric vehicles. Also, a strong balance sheet and ample cash flow help the company to return capital to its shareholders and undertake new acquisitions. Moreover, over a month, BorgWarner’s shares have outperformed the industry it belongs to.”

A number of other research analysts also recently commented on BWA. Susquehanna Bancshares set a $63.00 target price on BorgWarner and gave the stock a “buy” rating in a report on Wednesday, March 14th. BMO Capital Markets reaffirmed a “buy” rating and set a $64.00 target price on shares of BorgWarner in a report on Tuesday, March 6th. Barclays reaffirmed a “hold” rating and set a $58.00 target price on shares of BorgWarner in a report on Sunday, January 21st. Morgan Stanley raised BorgWarner from an “underweight” rating to an “overweight” rating and increased their target price for the stock from $37.54 to $58.22 in a report on Thursday, March 22nd. Finally, ValuEngine raised BorgWarner from a “hold” rating to a “buy” rating in a report on Friday, February 2nd. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and eleven have issued a buy rating to the company. The stock has a consensus rating of “Buy” and an average price target of $54.33.



NYSE:BWA opened at $53.57 on Wednesday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.15 and a current ratio of 1.46. BorgWarner has a 52 week low of $38.01 and a 52 week high of $58.22. The company has a market cap of $11,203.37, a price-to-earnings ratio of 13.68, a PEG ratio of 1.44 and a beta of 1.81.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, February 8th. The auto parts company reported $1.07 EPS for the quarter, topping analysts’ consensus estimates of $1.01 by $0.06. BorgWarner had a return on equity of 21.92% and a net margin of 4.49%. The company had revenue of $2.59 billion for the quarter, compared to the consensus estimate of $2.53 billion. During the same quarter last year, the business posted $0.85 EPS. BorgWarner’s quarterly revenue was up 14.5% compared to the same quarter last year. research analysts forecast that BorgWarner will post 4.28 earnings per share for the current fiscal year.

Institutional investors have recently made changes to their positions in the company. BP PLC raised its position in shares of BorgWarner by 212.0% during the 4th quarter. BP PLC now owns 78,000 shares of the auto parts company’s stock worth $3,984,000 after purchasing an additional 53,000 shares during the period. Prudential Financial Inc. raised its position in shares of BorgWarner by 154.3% during the 3rd quarter. Prudential Financial Inc. now owns 2,076,392 shares of the auto parts company’s stock worth $106,373,000 after purchasing an additional 1,259,970 shares during the period. Janus Henderson Group PLC raised its position in shares of BorgWarner by 37.3% during the 3rd quarter. Janus Henderson Group PLC now owns 62,635 shares of the auto parts company’s stock worth $3,209,000 after purchasing an additional 17,021 shares during the period. Cornercap Investment Counsel Inc. increased its position in BorgWarner by 3.1% in the 4th quarter. Cornercap Investment Counsel Inc. now owns 120,049 shares of the auto parts company’s stock valued at $6,133,000 after acquiring an additional 3,602 shares during the period. Finally, Neuberger Berman Group LLC increased its position in BorgWarner by 3.0% in the 3rd quarter. Neuberger Berman Group LLC now owns 826,818 shares of the auto parts company’s stock valued at $42,358,000 after acquiring an additional 23,872 shares during the period. Institutional investors and hedge funds own 95.68% of the company’s stock.

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BorgWarner Company Profile

BorgWarner Inc provides solutions for combustion, hybrid, and electric vehicles worldwide. It operates through two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; and timing systems, such as timing chains, variable cam timing products, crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains for light vehicles, and hybrid power transmission chains.

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