BorgWarner downgraded to Neutral at BofA on limited upside

As previously reported, BofA downgraded BorgWarner (BWA) to Neutral from Buy with a price target of $46, up from $41. Shares are currently approaching BorgWarner’s historical valuation median range and the firm sees further multiple expansion as challenging given its topline growth expectations, the analyst tells investors. Recent contract awards are supportive to growth, but they won’t come to fruition until 2027-plus and the firm thinks investors want to see an inflection in company results to support stock momentum.