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Research Alert: CFRA Maintains Hold Opinion On Shares Of Borgwarner Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Borgwarner Inc.
May 26, 2025 3:46 AM

03:10 AM EDT, 05/08/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target of $32, based on a 2026 P/E of 7.0x and a justified discount to the stock's five-year average forward P/E of 11.1x. We lower our adjusted EPS estimates by $0.05 to $4.25 for 2025 and by $0.25 to $4.60 for 2026. BWA posted Q1 adjusted EPS of $1.11 vs. $1.03 (+8%), well ahead of the $0.97 consensus. The beat was driven by stronger-than-expected sales, as revenue fell 2% to $3.52B ($120M ahead of consensus) and adjusted operating margin expanded 60 bps to 10.0%. Net sales were lower on a Y/Y basis for all segments except PowerDrive systems. BWA revised prior 2025 adjusted EPS guidance to $4.00-$4.45 from $4.05-$4.40 (current consensus: $4.12). BWA's net sales guidance increased to $13.6B-$14.2B from $13.4B-$14.0B previously, but it revised adjusted operating margin guidance to 9.6%-10.2% from 10.0%-10.2%. We maintain our Hold opinion, preferring other names in the auto parts and equipment space with stronger growth profiles and more generous cash returns to shareholders.

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