BorgWarner stock hits 52-week low at $29.16 amid market shifts

In a challenging market environment, BorgWarner Inc. (NYSE:BWA) stock has touched a 52-week low, dipping to $29.16. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts setting price targets ranging from $31 to $46. The automotive industry supplier, known for its innovative powertrain components, has faced headwinds that reflect broader economic trends, contributing to a notable 1-year decline of 7.71%. Investors are closely monitoring the company’s performance as it navigates through the industry’s transformation towards electrification and the impact of global supply chain issues. Despite challenges, BorgWarner maintains solid fundamentals with a healthy current ratio of 1.79 and has sustained dividend payments for 13 consecutive years. The current price level presents a critical juncture for BorgWarner, as market participants consider the stock’s future trajectory. For comprehensive analysis including 8 additional ProTips and detailed financial metrics, visit InvestingPro, where you’ll find the complete Pro Research Report covering what really matters about BWA’s investment potential.

In other recent news, BorgWarner reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share (EPS) of $1.01, surpassing the consensus estimate of $0.96. However, revenue for the quarter fell slightly short, coming in at $3.44 billion, a 2% drop compared to previous figures. Analyst Garrett Nelson from CFRA has revised the 12-month price target for BorgWarner, lowering it to $32 from $35, while maintaining a Hold rating on the shares.

This adjustment comes in the wake of BorgWarner’s release of their 2025 adjusted EPS guidance, which ranges from $4.05 to $4.40, falling short of the $4.48 consensus. This suggests a 2% year-over-year decline in earnings from $4.32 earned in 2023. Nelson from CFRA has also revised the company’s 2025 adjusted EPS estimate down to $4.30 from $4.65 and introduced a 2026 estimate of $4.85.

Despite these adjustments, BorgWarner continues to secure new business awards, including Variable Cam Timing systems for a major East Asian OEM and turbocharger program extensions with a major North American OEM. These developments are expected to support the company’s future long-term profitable growth. However, potential headwinds such as a slowdown in electric vehicle (EV) demand growth and the anticipated elimination of the federal electric vehicle tax credit may pose challenges for the company.

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