Morgan Stanley Upgrades BorgWarner (BWA) to Equalweight

Morgan Stanley analyst Adam Jonas upgraded BorgWarner (NYSE: BWA) from Underweight to Equalweight with a price target of $45.00 (from $35.00).

The analyst comments "At our new price target, BWA trades at 5.4x our 2023 EBITDA estimate. Our prior estimate had BWA trading at 4.4x EBITDA. To put the multiple in context, BWA's 5yr avg. EV/ NTM EBITDA is 5.7x. At our PT, BWA trades at a ~32.5% discount to our peer supplier group at 8.0x2023 EBITDA (based on current share prices and MSe EBITDA). We believe the market will be willing to pay a higher multiple for the longer tailed ICE business once it becomes more evident it will be accretive to long term margins."

For an analyst ratings summary and ratings history on BorgWarner click here. For more ratings news on BorgWarner click here.

Shares of BorgWarner closed at $42.24 yesterday.

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