12:30 PM EDT, 08/02/2025 (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 increase our 12-month target by $6 to $38, based on a 2026 P/E of 7.8x, a justified discount to BWA's 10-year average forward P/E of 10.9x. We raise our adjusted EPS estimates to $4.60 from $4.25 for 2025 and to $4.85 from $4.60 for 2026. Following better-than-expected Q2 results, we are raising our estimates but maintaining a Hold opinion. BWA posted Q2 adjusted EPS of $1.21 vs $1.19 (+2%), well ahead of the $1.08 consensus. The beat was due to stronger-than-expected sales, as revenue rose 1% to $3.64B ($20M ahead of consensus) and adjusted operating margin contracted 10 bps to 10.3%. BWA raised prior 2025 adjusted EPS guidance to $4.45-$4.65 from $4.00-$4.45 (consensus is $4.41). BWA also hiked its quarterly dividend by 55% to $0.68/share annualized and expanded its share repurchase authorization to $1B. While we were impressed with the release and applaud the company's shareholder-friendly actions, we see more compelling opportunities across the auto parts and equipment space at current levels.