A Beat-And-Raise Has Shifted Sentiment On BorgWarner

I liked BorgWarner (BWA) back in late August and thought sentiment was much too negative on this balanced play on internal combustion and electric powertrains, but I didn’t expect the roughly 35% snap back in the share price in such a short time. That’s Wall Street in a nutshell, though, as a share price that’s driven to unreasonably low levels on little more than fear can quickly rebound when sentiment shifts.

Although the valuation isn’t so deep in what I consider to be a “can’t miss” range, I do still think BorgWarner shares are undervalued, and I do still believe that this company is one of the best-placed plays on increasing efficiency and emissions standards, as well as the eventual migration to hybrid and EV models. A greater focus on its manufacturing costs would be welcome, and I’d note that there’s still risk to the backlog, but this is still a name to consider even after this run.

Continue here:
A Beat-And-Raise Has Shifted Sentiment On BorgWarner