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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.
Nov 2, 2025 9:50 AM

12:35 PM EST, 11/02/2025 (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 $12 to $50, based on a 2026 P/E of 10.0x, a justified discount to BWA's 10-year average forward P/E of 10.8x. We raise our adjusted EPS estimates to $4.70 from $4.60 for 2025, to $5.00 from $4.85 for 2026, and introduce 2027 at $5.40. Following much stronger-than-expected Q3 earnings, we raise our estimates and price target but maintain a Hold rating on BWA shares. The beat was driven by stronger-than-expected margins, as revenue rose 4% to $3.59B ($30M below consensus) and adjusted operating margin expanded 60 bps to 10.7%. While BWA's updated full-year guidance implied weaker-than-forecasted Q4 earnings, we note the company's tendency to provide conservative guidance historically. In short, we see more compelling risk/return potential in other auto supplier names at current levels and continue to have concerns regarding the potential impact of a slowdown in EV demand growth on results for BWA's eProduct segment. For these reasons, we maintain a Hold on the shares.

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