UPDATE: Citigroup Upgrades BorgWarner to Buy on Pullback

Citigroup raised its rating on BorgWarner

from Neutral to Buy and raised its price target from $73 to $79. Citigroup commented, "After downgrading BWA shares in Jan-11 on valuation, we're upgrading BWA shares to Buy and lifting the target to $79. The stock has underperformed the S&P since 2011, creating an appealing entry point, in our view. This is partially a call on the quarter/outlook not being as bad as some fear (to be sure, we do expect some incremental caution), but it's also a call on potential November catalysts (backlog & potential cash deployment), improved valuation (13x P/E back at discount to Industrial Conglomerates) and sound LT growth story." BorgWarner closed at $66.86 on Thursday.