UPDATE: Sterne Agee Initiates BorgWarner with Buy, $81 PT

Sterne Agee initiates coverage on BorgWarner (NYSE: BWA) with a Buy rating and a $81 target price as the company is seen as the best positioned supplier to capture growth from a move towards a cleaner, more efficient drivetrain on a global basis.

Sterne Agee notes, "Growth at twice the rate of the overall Supplier Comp Group and consistent financial performance has resulted in a premium multiple for BWA relative to the Group. Our $81 per share target price uses the low end of our targeted multiple range and discounts 2013 earnings."

BWA closed at $63.34 per share on Tuesday.