VLEEY - BorgWarner's Long-Term Appeal Remains Intact Despite Growing Near-Term Concerns
- BorgWarner posted better than expected third quarter numbers, with revenue 6% ahead of expectations and about 300bp above weighted underlying production.
- BorgWarner will be facing some renewed headwinds in Engine from declining diesel light vehicle production, but other products like dual-clutch transmissions and hybrid/EV components will help offset this pressure.
- Management attempted to reassure the Street that the debates about OEMs insourcing/outsourcing hybrid and EV components are largely noise, and the company can generate good returns on components (vs systems).
- BorgWarner shares look undervalued on this pullback, with double-digit annualized return potential.
For further details see:
BorgWarner's Long-Term Appeal Remains Intact Despite Growing Near-Term Concerns