Bank of America has revised its price target for BorgWarner (BWA, Financial), cutting it from $40 to $35 while maintaining a Buy rating on the stock. This decision comes as the company is reportedly performing better than anticipated in the first quarter in terms of production volumes and sales, potentially leading to more favorable results than initially expected.
Despite these promising early signs, the analyst highlighted significant uncertainties surrounding the potential impact of tariffs, which remain a major concern. The ongoing discussions about tariffs have not yet reached any conclusive resolution, contributing to elevated uncertainty in the market. As a result of this uncertainty, valuation multiples have been adjusted downward by as much as 1.0x across various companies covered by the firm. This adjustment suggests that businesses might be compelled to withdraw or suspend their financial guidance due to the current unpredictable environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for BorgWarner Inc (BWA, Financial) is $35.74 with a high estimate of $40.00 and a low estimate of $29.00. The average target implies an upside of 36.10% from the current price of $26.26. More detailed estimate data can be found on the BorgWarner Inc (BWA) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, BorgWarner Inc's (BWA, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BorgWarner Inc (BWA, Financial) in one year is $41.24, suggesting a upside of 57.04% from the current price of $26.26. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BorgWarner Inc (BWA) Summary page.
