BorgWarner Inc. Stock Analysis
Publication Date: September 22, 2024
Company Overview
BorgWarner Inc. (NYSE: BWA), based in Auburn Hills, Michigan, is a prominent player in the automotive sector, focusing on advanced solutions for combustion, hybrid, and electric vehicles worldwide. Since its incorporation in 1987, the company has specialized in a broad range of products, including turbochargers, power electronics, and battery systems, catering to both original equipment manufacturers (OEMs) and aftermarket services across light and commercial vehicles. As innovations in vehicle technology continue to evolve, BorgWarner is positioned to meet the rising demand for cutting-edge automotive solutions within the Consumer Cyclical sector and Auto Parts industry.
Market Performance and Investment Outlook
The auto parts sector is currently experiencing robust growth, with BorgWarner reporting a significant total revenue of approximately $14.34 billion. Analysts project a target high price of $47.00, indicating a strong potential for substantial returns for investors. The stock is currently priced at $33.40, which places it favorably within the expected target range, especially when considering an estimated mean price of $40.36. With a total of 227,768,992 outstanding shares and a relatively low short interest of 4.61%, investor sentiment appears cautiously optimistic. This presents a compelling buying opportunity for investors looking to capitalize on the cyclical nature of consumer spending and the auto parts industry’s growth trajectory.
Financial Performance and Analyst Sentiment
BorgWarner’s financial backdrop is bolstered by its impressive revenue figures, although there is a noted absence of data regarding EBITDA, limiting a full assessment of operational efficiency. However, with a mean recommendation of 2.4 based on 16 analysts’ evaluations, which typically suggests a “buy” outlook, the consensus indicates confidence in the stock’s upward movement. The current stock price in relation to its fifty-day moving average of $32.849 suggests mild investor optimism. Over the past year, the stock has exhibited volatility, oscillating between a fifty-two week high of $41.50 and a low of $29.51. This range implies potential for both price appreciation and decline, contingent on market conditions. As the stock approaches critical target prices, it may represent a strategic choice for investors aiming to harness growth opportunities within the automotive industry.
| Metric | Value |
|---|---|
| Market Cap | $7.6b |
| Total Debt | $3.9b |
| Total Cash | $1.3b |
| Shares Outstanding | 227.8m |
| Float Shares | 225.6m |
Disclaimer:
The information provided in this monthly report is for informational purposes only and should not be construed as financial, investment, or trading advice. AltStation.io does not guarantee the accuracy, completeness, or timeliness of the data and analyses presented. The content is based on publicly available information, and while we strive to ensure its accuracy, errors and omissions may occur.
Investing in stocks, cryptocurrencies, and other financial instruments involves significant risk, including the potential loss of principal. Past performance is not indicative of future results. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions. AltStation.io and its affiliates are not responsible for any losses incurred as a result of using this report.
By using this report, you acknowledge that you understand and accept these terms.