BorgWarner downgraded to Neutral after ‘disappointing’ guidance at Exane

As previously reported, Exane BNP Paribas analyst James Picariello downgraded BorgWarner to Neutral from Outperform with a price target of $35, down from $43. While the firm still views BorgWarner as one of the best-positioned for long-term success in transitioning to an electrified world among the legacy drivetrain suppliers, the firm’s prior thesis had called for “steady upside surprise” from BorgWarner’s foundational internal combustion engine business over the next three to four years and the firm no longer has conviction in that view following the company’s “disappointing” FY24 guidance.