Update shared on04 Aug 2025
Fair value Increased 6.22%The upward revision in BorgWarner's consensus price target reflects improved revenue growth forecasts, which more than offset a slight decline in net profit margin, raising fair value from $39.67 to $42.13.
What's in the News
- Raised full-year 2025 sales guidance to $14.0–$14.4 billion, with expected operating margin of 8.3–8.5% and EPS of $3.80–$3.97 per diluted share, citing higher industry production and FX tailwinds.
- Announced a 55% dividend increase to $0.17 per share and expanded share buyback plan by $233 million to a total of $1 billion, extending authorization through December 2028.
- Secured major contracts for e-motors, inverters, electric cross differential systems, and high-voltage coolant heaters with leading OEMs in China, North America, Europe, and Korea, supporting growth in hybrid and electric vehicle platforms.
- Strengthened product leadership and recurring business for turbochargers, DCT clutch modules, and EGR systems with global OEMs, expanding production footprint and localized manufacturing.
- Broadened manufacturing capacity in China for electric drive systems with the establishment of a new facility, supporting the rapidly expanding NEV market.
Valuation Changes
Summary of Valuation Changes for BorgWarner
- The Consensus Analyst Price Target has risen from $39.67 to $42.13.
- The Consensus Revenue Growth forecasts for BorgWarner has significantly risen from 3.8% per annum to 4.8% per annum.
- The Net Profit Margin for BorgWarner has fallen slightly from 6.69% to 6.42%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.