Market Overview

UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on BorgWarner on Q4 EPS

Related BWA
Goldman Remains Cautious On Auto Sector, Says 'The Next Leg Is Down'
BorgWarner Shares Downgraded To Neutral By Goldman

In a report published Friday, Deutsche Bank reiterated its Hold rating on BorgWarner (NYSE: BWA), and raised its price target from $71.00 to $74.00.

Deutsche Bank noted, “BWA reported Q4 EPS of $1.16, ex items; ahead of our $1.12 est and cons of $1.14. $0.02 of the upside was related to higher op income, with the rest from lower interest expense, a slightly lower tax rate and share count. Op income of $188M (10.9% margin) was slightly ahead of our $185M est, but still down from $213 M (12% margin) in 4Q11. Half of the yoy margin decline was due to R&D spending. The rest was due to cost/price pressures, which were difficult to offset given limited volume growth. On the top line, BWA outperformed the market (BWA Europe was -4% vs. -11% for the mkt; NA was +10% vs. +8%; Asia was +13% vs. +6%). Maintain Hold rating based on valuation.”

BorgWarner closed on Thursday at $75.14.

Latest Ratings for BWA

Oct 2016Goldman SachsDowngradesBuyNeutral
Aug 2016Seaport GlobalInitiates Coverage onNeutral
Jun 2016Bank of AmericaDowngradesBuyNeutral

View More Analyst Ratings for BWA
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings


Related Articles (BWA)

View Comments and Join the Discussion!