UBS Maintains a 'Neutral' on BorgWarner (BWA); Solid Q4, But See Limited Guidance Upside
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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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UBS maintains a 'Neutral' on BorgWarner (NYSE: BWA) price target raised from $71 to $80.
UBS analyst says, "Q4 beat driven by margins; sales miss consensus...The solid Q4 operating margin of 12% increases confidence that management will reach their +11.5% margin guidance. That said, margins should soften q/q in Q1 due to normal seasonality."
"BWA maintained guidance for EPS of $5.35-$5.65 and sales growth of 10-12% y/y. Notably the Street’s 2012E EPS is only $5.32 (UBSe $5.35). BWA’s guidance is based on EU production of -4% (vs. IHS of -8%). With >50% of sales in Europe, we believe this leaves little room for upward guidance revision through the year. That said, the low end of guidance still appears achievable given their strong margin trajectory and backlog."
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 $79.41 yesterday.
UBS analyst says, "Q4 beat driven by margins; sales miss consensus...The solid Q4 operating margin of 12% increases confidence that management will reach their +11.5% margin guidance. That said, margins should soften q/q in Q1 due to normal seasonality."
"BWA maintained guidance for EPS of $5.35-$5.65 and sales growth of 10-12% y/y. Notably the Street’s 2012E EPS is only $5.32 (UBSe $5.35). BWA’s guidance is based on EU production of -4% (vs. IHS of -8%). With >50% of sales in Europe, we believe this leaves little room for upward guidance revision through the year. That said, the low end of guidance still appears achievable given their strong margin trajectory and backlog."
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 $79.41 yesterday.
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