BorgWarner (NYSE:BWA) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of BorgWarner (NYSE:BWA) from a hold rating to a buy rating in a research report released on Sunday morning,Wall Street Zen reports.

Several other equities research analysts have also recently weighed in on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of BorgWarner in a research note on Friday, September 25th. Bank of America raised BorgWarner from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $78.00 to $85.00 in a report on Thursday, October 15th. Royal Bank Of Canada lowered their price target on shares of BorgWarner from $87.00 to $75.00 and set an “outperform” rating for the company in a report on Friday. Morgan Stanley lowered their price target on BorgWarner from $95.00 to $89.00 and set an “overweight” rating on the stock in a research report on Friday. Finally, Robert W. Baird set a $79.00 price target on shares of BorgWarner in a research report on Thursday, August 6th. Eleven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $79.33.

BorgWarner Stock Performance

Shares of BorgWarner stock opened at $51.70 on Friday. BorgWarner has a 12 month low of $40.73 and a 12 month high of $78.82. The company has a market capitalization of $10.38 billion, a PE ratio of 22.00, a PEG ratio of 0.75 and a beta of 1.20. The company has a current ratio of 1.41, a quick ratio of 1.12 and a debt-to-equity ratio of 0.32. The stock’s fifty day simple moving average is $61.31 and its 200 day simple moving average is $60.54.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Thursday, October 29th. The auto parts company reported $1.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.14. The company had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.50 billion. BorgWarner had a return on equity of 19.61% and a net margin of 3.36%. The firm’s revenue was down 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.24 earnings per share. On average, research analysts predict that BorgWarner will post 5.27 EPS for the current year.

BorgWarner announced that its board has authorized a share buyback program on Wednesday, August 5th that allows the company to buy back $1 billion in shares. This repurchase authorization allows the auto parts company to purchase up to 7.7% of its stock through open market purchases. Share repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Insider Activity at BorgWarner

In other BorgWarner news, Director Rajesh Kalathur acquired 7,407 shares of the stock in a transaction on Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, with a total value of $500,639.13. Following the transaction, the director owned 7,407 shares of the company’s stock, valued at approximately $500,639.13. This trade represents a ? increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CAO Amy B. Kulikowski sold 2,900 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the completion of the sale, the chief accounting officer owned 9,725 shares of the company’s stock, valued at approximately $667,135. This trade represents a 22.97% decrease in their position. The SEC filing for this sale provides additional information. 0.76% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On BorgWarner

Several hedge funds have recently bought and sold shares of BWA. Cullen Capital Management LLC purchased a new stake in BorgWarner in the 2nd quarter valued at about $4,937,000. Tribune Investment Group LP acquired a new position in BorgWarner in the 2nd quarter valued at about $3,432,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in BorgWarner during the 2nd quarter worth $5,664,000. Hsbc Holdings PLC acquired a new position in shares of BorgWarner during the second quarter worth approximately $35,785,000. Finally, Bessemer Group Inc. lifted its holdings in shares of BorgWarner by 19.8% in the first quarter. Bessemer Group Inc. now owns 241,173 shares of the auto parts company’s stock valued at $13,086,000 after purchasing an additional 39,787 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner News Summary

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: BorgWarner reported third-quarter adjusted EPS of $1.39, above the $1.24–$1.26 analyst consensus and up from $1.24 a year earlier. The company also increased its 2026 adjusted EPS guidance, highlighting the impact of cost controls and operational improvements. BorgWarner Reports Strong Third Quarter 2026 Results
• Positive Sentiment: The company announced nine business awards, including high-voltage inverter and eMotor programs, supporting its strategy to expand in electrification and build longer-term profitable growth. High-Voltage Inverter Supply Agreement
• Positive Sentiment: Despite target reductions, Morgan Stanley maintained an overweight rating with an $89 target, while RBC retained an outperform rating with a $75 target—both implying substantial potential upside from the reported share price. Morgan Stanley Ratings
• Neutral Sentiment: TD Cowen lowered its target to $67 and kept a hold rating, indicating analysts see valuation upside but remain cautious about the near-term outlook. TD Cowen Ratings
• Negative Sentiment: Third-quarter revenue was $3.49 billion, slightly below expectations and down 2.9% year over year, reflecting lower customer volumes. BorgWarner also reduced elements of its 2026 outlook, raising concerns about demand and the pace of recovery.
• Negative Sentiment: Morgan Stanley, RBC, and TD Cowen all reduced their price targets, signaling increased caution even though each firm’s revised target remains above the current trading level. RBC Ratings

BorgWarner Company Profile

BorgWarner Inc (NYSE:BWA) is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.