BorgWarner Inc. Remains one of the preferred names in our coverage with growth opportunity + margin strength

研报英文原文证据摘录

Equity Research

U.S. Autos & Mobility

10 August 2026

BorgWarner Inc.

Remains one of the preferred

names in our coverage with

growth opportunity + margin

strength

Key takes: 1. Data center projects progressing; revenue to

start in '27, potentially on multiple products; 2. '26 guide

largely reit...2Q reflecting ongoing margin strength from cost

performance; 3. New $1bn share buyback authorization. Reit

OW, PT to $85

OVERWEIGHT

BWA

Unchanged

NEUTRAL

U.S. Autos & Mobility

Unchanged

USD 85.00

Price Target

raised 2% from USD 83.00

USD 68.42

+24.2%

Price (07-Aug-26)

Potential Upside/Downside

Source: Bloomberg, Barclays Research

Market Cap (USD mn)

Shares Outstanding (mn)

As we have frequently noted for auto suppliers, the challenge over the past three years has been

a lack of organic revenue growth, with suppliers in aggregate posting zero growth over this

period. Yet BWA has an opportunity to reverse this trend, and begin posting MSD organic growth

in 2027 - and reinforcing why BWA remains one of the preferred names in our coverage.

BWA's growth story is not only from BWA's efforts in data centers, but also from growth

improvement in the core auto business. On the data center opportunity, while some have

questioned revenue visibility (in part questioning the positioning of BWA's offering), overall we

believe BWA's story is becoming more firm - albeit, one must wait until 2027 to see data center

revenue, with a subsequent ramp. On top of this, there is additional opportunity if BWA's newly

announced products in energy storage and microgrid inverters gain traction. And while we

assume for now that power gen will grow to only LDD % revenue, there very well may be upside.

Free Float (%)

52 Wk Avg Daily Volume (mn)

Dividend Yield (%)

Return on Equity TTM (%)

Current BVPS (USD)

Source: Bloomberg

Price Performance

52 Week range

Exchange-NYSE

USD 78.82-37.84

When combined with BWA's accelerating wins in the auto business, we see a path for BWA

organic growth in the coming years to be MSD % or better - a sharp improvement vs an average

of 0 organic growth in recent years.

On top of the potential growth inflection, BWA continues to outperform on the core business,

…