BorgWarner downgraded at Deutsche Bank amid global EV slowdown

As previously reported, Deutsche Bank downgraded BorgWarner to Hold from Buy with a price target of $36, down from $47. The sharp negative stock reaction to the company’s “solid” Q3 results, lower FY23 revenue guidance implying a “soft” Q4 and new downward revision to eProduct revenue target primarily reflects investors’ growing concerns about the risk from a global EV slowdown, the analyst contends. Following the quarterly report, the firm lowered its 2023 revenue to reflect lower EV sales but leaves its margin forecast largely unchanged while it cut its 2024 estimates “more materially,” the analyst noted.