In a report released today, Noah Kaye from Oppenheimer maintained a Buy rating on BorgWarner (BWA), with a price target of $51. The company’s shares opened today at $41.57.
Kaye commented:
“While BWA shares traded down on sector weakness Thursday, we saw several positives in 1Q results and guide. First, the company is maintaining a conservative market outlook despite a better than expected start to the year on both light vehicle production and outgrowth metrics. Second, we believe management’s explanation of key tailwinds for back-half margin improvement was cogent (see 2 nd bullet below). Third, from a strategic perspective, we are encouraged that BWA’s restructuring decision links explicitly to higher win rates and customer demand it sees for hybrid and electric propulsion solutions. While demand uptake for these architectures remains in early innings, the company’s willingness to recalibrate for growth opportunities while attending to margin trajectory is a positive in our view. Reiterate Outperform.”
According to TipRanks.com, Kaye is a 5-star analyst with an average return of 9.4% and a 60.6% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, Caterpillar, and Twin Disc.
Currently, the analyst consensus on BorgWarner is a Moderate Buy with an average price target of $46.83.
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Based on BorgWarner’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $230 million. In comparison, last year the company had a net profit of $225 million.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock.
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BorgWarner, Inc. engages in the provision of technology solutions for combustion, hybrid and electric vehicles. It operates through Engine and Drivetrain segments. The Engine segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance.
