UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on BorgWarner Following Q2 EPS Report

In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on BorgWarner BWA, and raised the price target from $60.00 to $63.00. In the report, Deutsche Bank noted, “BWA reported Q2 EPS, ex-restructuring, of $0.89 vs. our $0.83 & cons of $0.87. We'd note that excluding a $0.02 EPS benefit from foreign currency results were in-line with consensus. Nevertheless, operating results were very strong in the quarter. While organic revenue growth of 8.4% was in-line with our estimate, operating margin of 13.5% was well ahead our 12.7% est, as was incremental margin of 31% vs. our 19.5% estimate, driven by continued strong cost performance and operational execution. We continue to be impressed by BorgWarner's operational performance but maintain our hold rating based on valuation.” BorgWarner closed on Thursday at $62.25.