BorgWarner Rated Outperform with $68 Target, Citing $2B Power Revenue Upside
Wolfe Research raised its rating on BorgWarner to Outperform from Peer Perform and set a $68 price target, driving shares up over 2% intraday. The firm projects power generation segment growth could generate roughly $2 billion in revenue and add about $23 per share while automotive sales reaccelerate in 2027.
1. Upgrade and Market Reaction
Wolfe Research upgraded BorgWarner to Outperform from Peer Perform and established a $68 price target, prompting a more than 2% intraday share gain as investors responded to growth prospects.
2. Power Generation Segment Growth
The firm projected that favorable supply-demand conditions and competitive product specifications in primary power could drive approximately $2 billion in segment revenue at scale, potentially contributing about $23 per share to overall valuation.
3. Automotive Business Reacceleration
Wolfe Research anticipates BorgWarner’s core automotive business to reaccelerate beginning in 2027, citing potential tailwinds from improved EV loss profiles, reduced warranty costs, and upcoming product refreshes.