Assessing BorgWarner: Insights From 6 Financial Analysts
Portfolio Pulse from Benzinga Insights
BorgWarner (NYSE:BWA) has been the subject of varying opinions from 6 financial analysts over the past three months, with recent ratings showing 3 somewhat bullish and 3 indifferent. The average 12-month price target is now $41.17, a 10.5% decrease from the previous $46.00. Analysts from Barclays, Baird, Morgan Stanley, Oppenheimer, Goldman Sachs, and Deutsche Bank have all lowered their price targets for BWA. The company is a Tier I auto-parts supplier with significant customers like Ford and Volkswagen and has shown a revenue growth rate of 12.28% as of September 30, 2023. However, it faces challenges with below-average net margin, ROE, and ROA, but has a positive debt-to-equity ratio.

January 24, 2024 | 9:01 pm
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BorgWarner has received mixed analyst ratings with a downward revision in price targets, suggesting caution among analysts about the company's future performance despite its revenue growth.
The reduction in price targets by multiple analysts indicates a bearish outlook for BorgWarner in the short term. This consensus could lead to a negative impact on investor sentiment and potentially lower stock prices. The company's revenue growth is a positive sign, but concerns about profitability and asset utilization may overshadow this aspect, leading to a negative score. The relevance is 100 as the company is the main focus of the article, and the importance is set at 85 due to the significant impact analyst ratings can have on stock performance. The confidence level is at 80, reflecting the clear consensus among analysts and the detailed financial data provided.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100