TD Cowen Issues Pessimistic Forecast for BorgWarner (NYSE:BWA) Stock Price

BorgWarner (NYSE:BWA) had its price objective reduced by equities research analysts at TD Cowen from $68.00 to $67.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a “hold” rating on the auto parts company’s stock. TD Cowen‘s price objective indicates a potential upside of 31.27% from the company’s previous close.

Several other research firms have also weighed in on BWA. UBS Group dropped their price objective on shares of BorgWarner from $95.00 to $91.00 and set a “buy” rating on the stock in a research note on Wednesday, October 7th. Barclays boosted their price target on shares of BorgWarner from $83.00 to $85.00 and gave the company an “overweight” rating in a report on Monday, August 10th. Morgan Stanley lowered their price target on shares of BorgWarner from $95.00 to $89.00 and set an “overweight” rating on the stock in a report on Friday. Robert W. Baird set a $79.00 price target on shares of BorgWarner in a research note on Thursday, August 6th. Finally, Bank of America upgraded BorgWarner from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $78.00 to $85.00 in a report on Thursday, October 15th. Eleven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $79.33.

BorgWarner Price Performance

NYSE BWA traded down $2.26 on Friday, reaching $51.04. The company’s stock had a trading volume of 1,973,484 shares, compared to its average volume of 2,749,751. BorgWarner has a twelve month low of $40.73 and a twelve month high of $78.82. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. The firm’s 50 day moving average is $61.57 and its two-hundred day moving average is $60.52. The stock has a market cap of $10.39 billion, a PE ratio of 25.52, a PEG ratio of 0.82 and a beta of 1.16.

BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, October 29th. The auto parts company reported $1.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.25 by $0.14. The company had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%. BorgWarner’s revenue for the quarter was down 2.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.24 earnings per share. As a group, sell-side analysts predict that BorgWarner will post 5.19 EPS for the current year.

BorgWarner declared that its board has approved a stock repurchase plan on Wednesday, August 5th that permits the company to repurchase $1 billion in outstanding shares. This repurchase authorization permits the auto parts company to reacquire up to 7.7% of its stock through open market purchases. Share repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CAO Amy Kulikowski sold 2,900 shares of BorgWarner stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total transaction of $198,940.00. Following the sale, the chief accounting officer owned 9,725 shares of the company’s stock, valued at approximately $667,135. This trade represents a 22.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Rajesh Kalathur acquired 7,407 shares of the stock in a transaction dated Wednesday, August 19th. The shares were purchased at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the transaction, the director owned 7,407 shares of the company’s stock, valued at $500,639.13. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.76% of the company’s stock.

Institutional Investors Weigh In On BorgWarner

Several large investors have recently modified their holdings of the stock. Bank Julius Baer & Co. Ltd Zurich lifted its stake in BorgWarner by 0.4% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 137,002 shares of the auto parts company’s stock valued at $8,235,000 after acquiring an additional 538 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its position in BorgWarner by 16.0% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 33,878 shares of the auto parts company’s stock worth $2,036,000 after purchasing an additional 4,672 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new position in BorgWarner during the third quarter worth $105,000. Vise Technologies Inc. acquired a new position in shares of BorgWarner in the third quarter valued at $1,222,000. Finally, Parcion Private Wealth LLC increased its holdings in shares of BorgWarner by 4.3% in the third quarter. Parcion Private Wealth LLC now owns 9,172 shares of the auto parts company’s stock valued at $551,000 after purchasing an additional 379 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors.

Key Headlines Impacting BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Adjusted EPS exceeded expectations. BorgWarner reported third-quarter adjusted earnings of $1.39 per share, ahead of consensus estimates near $1.24-$1.25 and up from $1.24 a year earlier. Cost reductions, share repurchases and improved profitability supported the earnings performance. BorgWarner Reports Strong Third Quarter 2026 Results
• Positive Sentiment: Electrification and turbocharger wins strengthen the long-term growth story. BorgWarner announced nine business awards, including high-voltage inverter contracts, multiple eMotor awards in China and three turbocharger awards with a global powertrain manufacturer. A silicon-carbide supply agreement with Wolfspeed also supports the company’s inverter strategy. High-Voltage Inverter Supply Agreement
• Neutral Sentiment: Analyst sentiment remains constructive but less bullish. Royal Bank of Canada lowered its price target from $87 to $75 while maintaining an “outperform” rating, implying substantial potential appreciation from recent trading levels. The reduction reflects more cautious near-term expectations rather than a change to its positive rating. RBC Lowers BorgWarner Price Target
• Negative Sentiment: Revenue and volumes remain the key weaknesses. Third-quarter revenue of $3.49 billion was slightly below estimates and declined 2.9% year over year, primarily reflecting lower production volumes. Reports that BorgWarner reduced parts of its 2026 outlook are likely offsetting the earnings beat and raising concerns about demand and auto-sector conditions. BorgWarner Q3 Results and Revised Outlook

About BorgWarner

BorgWarner Inc (NYSE:BWA) is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.