UBS raised the firm’s price target on BorgWarner (BWA) to $56 from $55 and keeps a Neutral rating on the shares. After growing cautious following Q4 results and 2026 guidance due to limited upside and reliance on multiple expansion, valuations now appear more reasonable, though it remains unclear if any structural changes have occurred, the analyst tells investors in a research note. While demand concerns and potential production cuts may weigh on sentiment and near-term margins could face pressure from inflationary costs, expectations have reset lower, so even modest cuts or credible guidance reiteration could be positively received by investors, the firm adds.
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