BorgWarner Inc. (NYSE:BWA) Stock Has Average Target Price of $79.00

BorgWarner Inc. (NYSE:BWA) has been given an average recommendation of “Moderate Buy” by the fourteen brokerages that are presently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a hold rating and eleven have issued a buy rating on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $79.33.

A number of analysts recently issued reports on BWA shares. Morgan Stanley decreased their target price on shares of BorgWarner from $95.00 to $89.00 and set an “overweight” rating on the stock in a research report on Friday. Royal Bank Of Canada cut their price target on BorgWarner from $87.00 to $75.00 and set an “outperform” rating for the company in a report on Friday. Barclays increased their price target on BorgWarner from $83.00 to $85.00 and gave the stock an “overweight” rating in a research note on Monday, August 10th. Bank of America upgraded BorgWarner from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $78.00 to $85.00 in a report on Thursday, October 15th. Finally, Wall Street Zen raised BorgWarner from a “hold” rating to a “buy” rating in a research report on Sunday.

Key BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: BorgWarner reported third-quarter adjusted EPS of $1.39, above the $1.24–$1.26 analyst consensus and up from $1.24 a year earlier. The company also increased its 2026 adjusted EPS guidance, highlighting the impact of cost controls and operational improvements. BorgWarner Reports Strong Third Quarter 2026 Results
• Positive Sentiment: The company announced nine business awards, including high-voltage inverter and eMotor programs, supporting its strategy to expand in electrification and build longer-term profitable growth. High-Voltage Inverter Supply Agreement
• Positive Sentiment: Despite target reductions, Morgan Stanley maintained an overweight rating with an $89 target, while RBC retained an outperform rating with a $75 target—both implying substantial potential upside from the reported share price. Morgan Stanley Ratings
• Neutral Sentiment: TD Cowen lowered its target to $67 and kept a hold rating, indicating analysts see valuation upside but remain cautious about the near-term outlook. TD Cowen Ratings
• Negative Sentiment: Third-quarter revenue was $3.49 billion, slightly below expectations and down 2.9% year over year, reflecting lower customer volumes. BorgWarner also reduced elements of its 2026 outlook, raising concerns about demand and the pace of recovery.
• Negative Sentiment: Morgan Stanley, RBC, and TD Cowen all reduced their price targets, signaling increased caution even though each firm’s revised target remains above the current trading level. RBC Ratings

BorgWarner Trading Down 3.0%

Shares of BWA opened at $51.70 on Friday. BorgWarner has a 1-year low of $40.73 and a 1-year high of $78.82. The company has a market capitalization of $10.53 billion, a P/E ratio of 22.00, a P/E/G ratio of 0.76 and a beta of 1.16. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.41 and a quick ratio of 1.76. The firm’s 50 day simple moving average is $61.31 and its 200 day simple moving average is $60.54.

BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Thursday, October 29th. The auto parts company reported $1.39 EPS for the quarter, topping analysts’ consensus estimates of $1.25 by $0.14. The firm had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a net margin of 3.36% and a return on equity of 19.61%. The business’s revenue for the quarter was down 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.24 EPS. Sell-side analysts forecast that BorgWarner will post 5.27 earnings per share for the current fiscal year.

BorgWarner declared that its Board of Directors has approved a share buyback plan on Wednesday, August 5th that authorizes the company to buy back $1 billion in outstanding shares. This buyback authorization authorizes the auto parts company to reacquire up to 7.7% of its stock through open market purchases. Share buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at BorgWarner

In other BorgWarner news, Director Michael S. Hanley sold 5,000 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $65.51, for a total transaction of $327,550.00. Following the completion of the sale, the director owned 34,313 shares of the company’s stock, valued at $2,247,844.63. This represents a 12.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Amy B. Kulikowski sold 2,900 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the transaction, the chief accounting officer owned 9,725 shares in the company, valued at approximately $667,135. This trade represents a 22.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.76% of the stock is owned by company insiders.

Institutional Trading of BorgWarner

Institutional investors and hedge funds have recently modified their holdings of the company. Clearstead Trust LLC acquired a new position in shares of BorgWarner in the second quarter worth $28,000. Ceredex Value Advisors LLC acquired a new position in BorgWarner in the 2nd quarter valued at about $40,000. Fiduciary Financial Advisors purchased a new position in BorgWarner in the 2nd quarter valued at about $49,000. William Mack & Associates Inc. purchased a new position in BorgWarner in the 3rd quarter valued at about $46,000. Finally, Jones Financial Companies Lllp acquired a new stake in shares of BorgWarner during the 2nd quarter worth about $57,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

About BorgWarner

BorgWarner Inc (NYSE:BWA) is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.