Research Alert: CFRA Raises Opinion On Shares Of Borgwarner Inc. To Strong Buy From Hold

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month price target of $75, based on a 2027 P/E of 13.0x, a justified premium to BWA's 10-year average forward P/E of 10.7x due to growth opportunities from new products and end markets. Following BWA's much stronger-than-expected Q1 earnings, we are raising our estimates and our rating on the shares to Strong Buy from Hold. We raise our adjusted EPS estimates to $5.25 from $5.15 for 2026 and to $5.75 from $5.60 for 2027. BWA continues to successfully navigate a difficult automotive cycle. While the company merely maintained prior 2026 guidance, we believe BWA is likely to raise guidance in subsequent quarters and see significant earnings upside in the longer term from the diversification of its product portfolio, e.g., its entrance into the AI-driven data center market, where it inked a turbine generator system project earlier this year with TurboCell (production expected to begin in early 2027 and estimated sales of more than $300M during the first year).