UPDATE: JP Morgan Cuts PT to $82 on BorgWarner on Lower Backlog

JP Morgan reiterated its Overweight rating on BorgWarner

but reduced its price target from $85 to $82. JP Morgan noted, "Backlog driven by China, while contribution from Europe and NA declines. … BWA attributed this decline in European backlog in part to: (1) a -$100 mn adjustment related to lower assumed production volume in Europe; (2) a roughly -$125 mn due to the recategorizing of some revenue from Europe to China, stemming from a product sourcing decision; (3) a roughly -$50 mn currency headwind; and (4) -$35 mn related to the sale of its spark plug business. The much more modest -$40 mn decline in BWA's North American backlog (to $460 mn vs. $500 mn prior) relates primarily to the softer commercial vehicle market." BorgWarner closed at $68.10 on Tuesday.