UPDATE: Deutsche Bank Upgrades BorgWarner to Buy, Raises PT on Compelling Valuation

In a report published Friday, Deutsche Bank analyst Rod Lache upgraded the rating on BorgWarner BWA from Hold to Buy, and raised the price target from $63.00 to $69.00. In the report, Deutsche Bank noted, “BorgWarner's shares have declined in conjunction with the broader Auto/Auto Parts Universe over the past month due to concerns over the company's significant European/EUR exposure (48% of BWA's sales), and signs that growth in other markets (i.e. North America, China) are likely to moderate. While we do not believe that BWA is immune to Auto Industry cyclicality, we believe that its products are nonetheless positioned to deliver accelerating organic growth and margin outperformance over the next 5-years, even in a decelerating Global Auto Production scenario. And the company's valuation (11.8x 2016) has become too compelling to ignore.” BorgWarner closed on Thursday at $54.52.