KeyBanc Downgrades BorgWarner (BWA) to Hold; Chopping Estimates

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BWA Hot Sheet

Rating Summary:
6 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23

KeyBanc downgrades BorgWarner Inc. (NYSE: BWA) from Buy to Hold.

KeyBanc analyst says, "We are downgrading our rating on BorgWarner to HOLD and lowering our earnings estimates to $0.07 from $0.27 for 2009 and to $1.35 from $1.58 for 2010 as we are incrementally concerned that: 1) BWA could report 3Q09 earnings below consensus expectations or that the Street may lower estimates prior to its earnings release, both of which could be a negative catalyst for the stock (we are lowering our 3Q09 estimate to $0.10 from $0.18; First Call mean is $0.13); 2) negative factors affecting 2Q09 and 3Q09 earnings could persist for several more quarters; and 3) potential weakness in stock price could present long-term investors with a more attractive entry point given the solid longer-term fundamentals at BWA."

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BorgWarner Inc. engages in the manufacture and sale of engineered automotive systems and components primarily for power train applications worldwide.