Update shared on 20 Nov 2025
BorgWarner's analyst price targets have recently increased. The consensus has moved higher by up to $10, as analysts cite strong margin execution, new business wins, and stabilizing automotive demand as key factors supporting the upward revisions.
Analyst Commentary
Recent Street research reveals shifting perspectives within the analyst community as BorgWarner’s financials and industry fundamentals evolve. The latest updates highlight both confidence and caution regarding the company’s outlook and valuation.
Bullish Takeaways- Several bullish analysts have increased price targets for BorgWarner, citing strong margin execution and successful new business awards as indicators of a well-executed strategy.
- Improved free cash flow and a favorable updated 2025 EBIT guide, especially compared to peers, have reinforced positive sentiment around the company's operational performance.
- Some analysts anticipate BorgWarner could attain the upper end of its guidance range, reflecting confidence in underlying trends and the company’s potential for further growth.
- Outlook for the broader automotive sector has stabilized, with ongoing vehicle demand and limited disruption from tariffs. These factors are seen as supportive for BorgWarner’s continued progress.
- Bearish analysts caution that BorgWarner’s current valuation is approaching its historical median. This could make further multiple expansion more difficult unless topline growth accelerates.
- Although recent contract awards support future growth, some are not expected to contribute meaningfully to results until 2027 or later. This could potentially delay near-term upside for investors.
- Expectations for the sector overall are for only modest upward guidance revisions. Management teams are aiming to temper expectations rather than signal sharp accelerations in performance.
- There is wariness that investors may be looking for a clear inflection in operating results before granting further stock momentum, particularly given the cautious outlook on industry growth rates.
What's in the News
- BorgWarner secured multiple contracts with Chery to supply advanced all-wheel drive (AWD) technologies for pickup trucks and SUVs. Mass production is slated for 2027. (Key Developments)
- The company issued updated 2025 guidance, projecting earnings per diluted share of $3.52 to $3.63 and net sales of $14.1 to $14.3 billion, along with an increase in full-year margin, EPS, and free cash flow outlook. (Key Developments)
- BorgWarner completed a share repurchase, buying 2.3 million shares in the latest tranche and totaling 6.61% of shares repurchased under its 2024 program. (Key Developments)
- New supply agreements involve BorgWarner providing battery systems for the fully electric, autonomous HOLON Urban shuttle. Manufacturing will begin in 2027 in South Carolina. (Key Developments)
- The company landed projects with Great Wall Motor for electrified propulsion and with a leading Chinese OEM for its 7-in-1 Integrated Drive Module for hybrid SUVs. This will support mass production from 2026. (Key Developments)
Valuation Changes
- Fair Value: Remained unchanged at $49.21 per share, indicating no revision from prior estimates.
- Discount Rate: Increased slightly from 8.88% to 9.35%. This suggests a minor adjustment in the company's perceived investment risk profile.
- Revenue Growth: Remained stable at 3.87%, showing no change in expected growth rates.
- Net Profit Margin: Remained nearly unchanged at 6.00%, reflecting a consistent outlook for profitability.
- Future P/E: Rose slightly from 13.33x to 13.50x, indicating a modest increase in expected valuation multiples.
Disclaimer
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