Update shared on05 Sep 2025
Fair value Increased 1.72%Upward revisions to BorgWarner’s price target reflect Q2 earnings outperformance, improved EPS outlook, and increased optimism in the vehicle technology sector amid resilient auto supplier fundamentals, raising the consensus analyst price target slightly from $42.73 to $43.47.
Analyst Commentary
- Q2 earnings outperformance and improved EPS outlook prompted upward revisions to price targets.
- Bullish analysts expect continued solid results for the auto suppliers segment, especially compared to automakers amid broader market uncertainty in 2H 2025.
- Increased optimism regarding the vehicle technology and mobility sector, with improved fundamentals and better-than-expected Q2 and Q3 visibility.
- Upgrades in US auto sales forecasts following the expectation of more moderate tariff levels, despite ongoing industry risks related to tariffs and pricing.
- Raised estimates and price targets reflect confidence in firmer industry conditions versus previous more cautious views.
What's in the News
- BorgWarner is actively seeking acquisitions, focusing on strong industrial logic, near-term accretion, and disciplined valuations for potential targets.
- The company secured multiple new contracts globally—including turbocharger, high-voltage coolant heater, electric motor, inverter, and electric cross differential technologies—for leading OEMs across Europe, North America, China, and Korea, strengthening its position in hybrid and electric vehicle markets.
- BorgWarner completed the repurchase of 12.5 million shares ($411.5 million) and increased its buyback authorization by $233 million to a total of $1 billion, extending the plan to the end of 2028.
- The company raised full-year 2025 guidance, now projecting net sales of $14.0–$14.4 billion, operating margin of 8.3%–8.5%, and EPS of $3.80–$3.97.
- The Board declared a 55% dividend increase to $0.17 per share, payable September 2025.
Valuation Changes
Summary of Valuation Changes for BorgWarner
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $42.73 to $43.47.
- The Future P/E for BorgWarner remained effectively unchanged, moving only marginally from 11.22x to 11.42x.
- The Consensus Revenue Growth forecasts for BorgWarner remained effectively unchanged, at 4.4% per annum.
Disclaimer
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