Skip to main content

Market Overview

Jefferies Favors BorgWarner And Delphi, Neutral On Tenneco

Share:

Mobility innovation is expected to drive “the next leg” of the automotive industry’s growth, and auto suppliers that have “value-add products in categories that drive improved fuel efficiency or active safety evolution are appear most likely to outperform,” Jefferies’ David Kelley said in a report.

BorgWarner

Kelly initiated coverage of BorgWarner Inc. (NYSE: BWA) with a Buy rating and a price target of $43. He mentioned that the company was a propulsion leader and its growth would be driven by the growing penetration of internal combustion.

Turbochargers accounted for 31 percent of BorgWarner’s 2015 revenue and is the company’s largest product segment. Increasing global regulatory pressures would likely exert pressure on ICE engines, while turbocharger penetration is expected to grow.

The analyst added that the Remy acquisition positions BorgWarner for “improved alternative powertrain penetration given a growing product portfolio of electric motors and thermal management and synergies across drivetrain and stop-start technology.”

Delphi Automotive

Kelly initiated coverage of Delphi Automotive PLC (NYSE: DLPH) with a Buy rating and a price target of $80. He considers the company as being the “best positioned” to benefit from the growing penetration of Electronics & Safety and Powertrain Systems segment technologies.

The Electronic Architecture segment would benefit from the expected trends of rising electrification across multiple vehicle function.

Tenneco

The analyst initiated coverage of Tenneco Inc (NYSE: TEN) with a Hold rating and a price target of $62. He mentioned that the company’s Clean Air division was poised to benefit from the “continued rollout of global emissions regulations of criteria pollutants.”

Tenneco’s aftermarket business, Ride Performance, appears underappreciated and could continue to outperform backed by favorable industry fundamentals.

Latest Ratings for BWA

DateFirmActionFromTo
Feb 2021Morgan StanleyMaintainsUnderweight
Feb 2021Credit SuisseMaintainsNeutral
Nov 2020B of A SecuritiesMaintainsBuy

View More Analyst Ratings for BWA
View the Latest Analyst Ratings

 

Related Articles (BWA + TEN)

View Comments and Join the Discussion!

Posted-In: David L. Kelley JefferiesAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas

Latest Ratings

StockFirmActionPT
QTRXSVB LeerinkMaintains85.0
VEEVPiper SandlerMaintains350.0
PTGXSVB LeerinkMaintains41.0
IPARDA DavidsonMaintains77.0
TOYDA DavidsonMaintains37.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com