BorgWarner Stock Rating Reaffirmed by Zacks (BWA)
BorgWarner (NYSE:BWA)‘s stock had its “neutral” rating reiterated by Zacks in a research report issued to clients and investors on Monday. They currently have a $64.00 target price on the stock. Zacks‘s price target would indicate a potential upside of 5.07% from the stock’s previous close.
Zacks’ analyst wrote, “BorgWarner posted an 18.7% increase in adjusted earnings to $0.89 per share in the second quarter of 2014, outpacing the Zacks Consensus Estimate of $0.87. Revenues improved 16% year over year to $2.2 billion, in line with the Zacks Consensus Estimate. The improvement was driven by global adoption of the powertrain technology, together with benefits from the Wahler takeover. For 2014, BorgWarner expects better performance than 2013. Organic sales are expected to increase 13-15% and net earnings will be in the band of $3.25 $3.35 per share. BorgWarner is poised to benefit from the acquisition of Gustav Wahler and the restructuring of the Drivetrain segment. However, pricing pressure from OEMs and strong competition could affect the company’s results. Thus, we are reiterating our Neutral recommendation.”
Shares of BorgWarner (NYSE:BWA) traded up 1.26% during mid-day trading on Monday, hitting $61.68. The stock had a trading volume of 579,458 shares. BorgWarner has a 52-week low of $47.12 and a 52-week high of $67.49. The stock’s 50-day moving average is $65.18 and its 200-day moving average is $61.34. The company has a market cap of $14.089 billion and a price-to-earnings ratio of 21.30.
BorgWarner (NYSE:BWA) last released its earnings data on Thursday, July 31st. The company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.87 by $0.02. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.20 billion. During the same quarter in the previous year, the company posted $1.50 earnings per share. The company’s revenue for the quarter was up 16.0% on a year-over-year basis. Analysts expect that BorgWarner will post $3.36 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 0.85%. The ex-dividend date is Thursday, August 28th. This is an increase from BorgWarner’s previous quarterly dividend of $0.13.
A number of other analysts have also recently weighed in on BWA. Analysts at Robert W. Baird raised their price target on shares of BorgWarner from $75.00 to $78.00 in a research note on Friday. Separately, analysts at Deutsche Bank reiterated a “hold” rating on shares of BorgWarner in a research note on Friday. They now have a $63.00 price target on the stock, up previously from $60.00. Finally, analysts at Gabelli downgraded shares of BorgWarner from a “buy” rating to a “hold” rating in a research note on Friday. They noted that the move was a valuation call. Five investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. BorgWarner presently has an average rating of “Buy” and an average price target of $75.36.
BorgWarner Inc, is a global supplier of engineered automotive systems and components primarily for powertrain applications.
To view Zacks’ full report, visit Zacks’ official website.
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