Jefferies Cuts Price Target on BorgWarner (BWA), Sees Weaker Total Sales Growth
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Price: $68.66 +1.16%
Rating Summary:
17 Buy, 13 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies is maintaining its Hold rating on shares of BorgWarner (NYSE: BWA), while reducing its price target from $86 to $73.
The firm has lowered its fiscal 2012 EPS estimate from $5.70 to $5.40 as total sales are now forecasted to only grow by 14.4 percent over the year, down from the firm's previous estimate of 16.8 percent growth. The company receives roughly half of its total sales from Europe.
An analyst at Jefferies comments, "Our sense is that the potential upside to our margin assumptions offset this volume risk. We are only modeling 20bps of YoY operating margin expansion for BWA in 2012. This seems prudent at this time, given increased materials and launch costs. But given BWA’s history of strong execution, we feel the downside risk to revenue is more or less offset by the upside risk to operating margins."
The firm has lowered its Q4 and FY11 EPS estimates from $1.27 and $4.53 to $1.24 and $4.51. Jefferies also cut its FY11 sales estimate from $7.271 billion to $7.251 billion.
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 $65.12 yesterday.
The firm has lowered its fiscal 2012 EPS estimate from $5.70 to $5.40 as total sales are now forecasted to only grow by 14.4 percent over the year, down from the firm's previous estimate of 16.8 percent growth. The company receives roughly half of its total sales from Europe.
An analyst at Jefferies comments, "Our sense is that the potential upside to our margin assumptions offset this volume risk. We are only modeling 20bps of YoY operating margin expansion for BWA in 2012. This seems prudent at this time, given increased materials and launch costs. But given BWA’s history of strong execution, we feel the downside risk to revenue is more or less offset by the upside risk to operating margins."
The firm has lowered its Q4 and FY11 EPS estimates from $1.27 and $4.53 to $1.24 and $4.51. Jefferies also cut its FY11 sales estimate from $7.271 billion to $7.251 billion.
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 $65.12 yesterday.
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