Market Overview

Amid Shift To Electric Vehicles, Analyst Looks For BorgWarner To Benefit

Share:
Amid Shift To Electric Vehicles, Analyst Looks For BorgWarner To Benefit
Related BWA
44 Stocks Moving In Tuesday's Mid-Day Session
22 Stocks Moving In Tuesday's Pre-Market Session
All Cap Growth Strategy Q3 2018 Commentary (Seeking Alpha)

Not every auto supplier will survive the rise of electric. But BorgWarner Inc. (NYSE: BWA) hopes to ride the current — and Oppenheimer said it’s situated to do do.

The Rating

Oppenheimer analyst Noah Kaye initiated coverage on BorgWarner with an Outperform rating and $63 price target.

The Thesis

The firm’s differentiated technology is considered a buffer against industry disruptions. Its products propel vehicles and are agnostic to the energy source, Kaye said. 

“As the global auto industry evolves to meet increasingly stringent emissions regulations, we expect BorgWarner to benefit from accelerating vehicle electrification, continued runway on turbochargers and overall strong position across product lines for internal combustion engines,” the analyst said in a Thursday note. 

BorgWarner ranks No. 2 among turbocharger manufacturers with 27-percent market share; boasts between 20- and 25-percent share for combustion engines; and is better positioned to support EVs with recent acquisitions, according to Oppenheimer. 

At the same time, Oppenheimer anticipates BorgWarner will undergo a transformation from a parts supplier to a technology partner valued by automakers for its expertise in limiting emissions.

The analyst forecasts 7.1-percent revenue compound annual growth, with $1.5 billion to expend in EV-related mergers.

Price Change

At the time of publication, shares were trading up 1 percent at $53.60.

Related Links:

14 Stocks Insulated From Amazon's Dominance

Which Is A Better Investment: Automakers, Auto Suppliers Or Car Parts/Service Providers?

Latest Ratings for BWA

DateFirmActionFromTo
Oct 2018CitigroupMaintainsNeutralNeutral
Oct 2018BuckinghamMaintainsNeutralNeutral
Jul 2018CitigroupMaintainsNeutralNeutral

View More Analyst Ratings for BWA
View the Latest Analyst Ratings

Posted-In: Auto Suppliers Colin Rusch EV Noah KayeAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (BWA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ETTXWedbushInitiates Coverage On19.0
WINGWedbushDowngrades0.0
BMYCitigroupDowngrades57.0
INTCNomuraUpgrades0.0
HRZNKeefe Bruyette & WoodsDowngrades10.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Analysts Go Cuckoo For LULU After Q3 Beat

Cowen Raises Sage Value On New Phase 2 Trial Success