BORGWARNER (+) : Energy Valuation in Full Picture; Raising PT to $92

Research evidence excerpt

BORGWARNER (+) : Energy Valuation in Full Picture; Raising PT to $92

EQUITIES

AUTOMOTIVE

BORGWARNER OUTPERFORMPRICE* USD72.6  TARGET PRICE USD92 (UPSIDE 27%) TARGET 24%PRICE nonEPSmaterial27e unchangedEPS 28e

Energy Valuation in Full Picture; Raising PT to $92

We now fully model out each of BWA’s energy businesses through ‘35E, and while we see clear8 JUNE 2026

Securities Research Report signs investors are beginning to appreciate its differentiated product portfolio, we continue to see

Production time: 12:55* (London time)

substantial upside. We believe BWA's trident of energy product launches, tailored for AI datacenter

Research Analysts & Publishing Entities

demand, are collectively worth $36/sh., representing ~39% of our now-raised $92 PT (from $74).

James Picariello, CFA With the Co.'s core auto business poised for growth inflection next yr., now combined w/ ever moreBNP Paribas Securities Corp1

(+1) 917 903 0391 meaningful AI DC earnings contribution potential, we reiterate Outperform.

James.picariello@us.bnpparibas.com

BWA’s "right to win" in power gen. & 800V datacenter demand (see pg. 4-21 for full breakdown)Jake Scholl

In this report, we fully break down & value each prong of BWA’s energy trident, 1) turbine generators,BNP Paribas Securities Corp1

(+1) 646 899 6526 2) DC battery solutions (incl. BESS, UPS, BBU), & 3) 800V SiC grid-forming inverters. We see

Jake.Scholl@us.bnpparibas.com compelling opportunities for all three, each tailored for AI DC demand. Our past turbine generator

Max Kushnick deep dive remains intact, w/ recent findings indicating capacity expansion (pg. 13). Separately, we

BNP Paribas Securities Corp1 believe BWA's 800V auto inverter scale catalyzes UPS/BBU growth – given that many industrial/DC