Wolfe Research upgraded BorgWarner (NYSE: BWA) to Outperform from Peerperform and set a $68 price target, with shares rising more than 2% intra-day Wednesday.
The firm cited a compelling opportunity in the company’s power generation segment, noting that while investor skepticism remains, favorable supply-demand dynamics—particularly in primary power—combined with competitive product specifications and attractive total cost of ownership could support growth.
Wolfe estimated that the opportunity could generate approximately $2 billion in revenue at scale, potentially contributing around $23 per share to BorgWarner’s valuation.
In addition, the firm expects the company’s core automotive business to reaccelerate starting in 2027, further supporting upside potential toward its price target.
