Morgan Stanley Raises BorgWarner (BWA) Price Target to $95

Morgan Stanley raised its rating on BorgWarner Inc. (NYSE: BWA) to Overweight and lifted its price target from $71.00 to $95.00 on October 6, 2026. The research note outlines a bullish outlook for the auto parts manufacturer as the firm adjusts its expectations for the company's growth trajectory. BorgWarner closed at $63.36 on the day of the rating change.

BWA BorgWarner Inc.

$58.13 ▲ +25.63% year to date

1M 3M YTD

Daily close · Oct 16, 2026

Morgan Stanley's Call on BorgWarner

On October 6, 2026, Morgan Stanley issued an Overweight rating on BorgWarner while boosting its price target to $95.00 from a previous target of $71.00. The firm's forward-looking research note highlights renewed confidence in the company's business model and market position within the automotive sector.

Other Institutional Activity in BorgWarner

Other large investment firms have also adjusted their holdings in the auto parts supplier. LSV Asset Management grew its holdings by 124,522 shares, ending with 6,576,464 shares worth about $382.29 million. AQR Capital Management, LLC reduced its stake by 1,475,330 shares, holding 5,749,595 shares valued at approximately $334.22 million. Victory Capital Management Inc. grew its holdings by 227,952 shares, ending with 4,880,034 shares worth about $283.68 million. William Blair Investment Management, LLC grew its holdings by 900,681 shares, ending with 3,784,707 shares worth about $220.01 million.

BorgWarner Inc. Stock Down 0.5%

BorgWarner shares recently traded around $58.21, sitting below the event-day close of $63.36 from October 6, 2026. The stock currently trades below its 50-day moving average of $63.97 and its 200-day moving average of $60.15. Shares have ranged between a 52-week low of $40.73 and a 52-week high of $78.82.

Recent Earnings

BorgWarner posted trailing twelve-month revenue of $14.34 billion and basic earnings per share of $2.00. The company generated a net profit margin of 2.9% and a return on equity of 8.1% over the same period. The firm operates with a price-to-earnings ratio of 29.34 and a forward P/E ratio of 9.92. Investors look toward the company's next earnings report, scheduled for October 29, 2026, for further financial updates.

Dividend

BorgWarner distributes an annual dividend yielding 1.16%, supported by a dividend payout ratio of 34.0%.

Insider Buying and Selling at BorgWarner Inc.

Company insiders executed several transactions prior to the analyst update. Officer Antony B. Kulikowski sold 2,900 shares at $68.60 on August 18, 2026, for a total of $198,940. Director Rajesh Kalathur bought 7,407 shares at $67.59 on August 19, 2026, totaling $500,664. General Counsel Tonit Monique Calaway sold 22,000 shares at $66.26 on August 24, 2026, worth $1,457,667. Director Michael S. Hanley sold 5,000 shares at $65.51 on August 28, 2026, for a total of $327,550.

Analysts Set New Price Targets

Wall Street firms maintain positive coverage on the stock alongside Morgan Stanley's update. TD Cowen maintains a Hold rating with a $68.00 target. JP Morgan maintains an Overweight rating with an $85.00 target. Barclays maintains an Overweight rating with an $85.00 target. RBC Capital initiated coverage with an Outperform rating and an $87.00 target. Overall, the stock carries a consensus buy recommendation from 15 analyst opinions, with a mean price target of $81.33.

About BorgWarner

BorgWarner Inc. designs and manufactures engineered propulsion systems and components for combustion, hybrid, and electric vehicles globally. The company operates through segments focused on turbos, thermal technologies, drivetrain systems, power drives, and battery charging solutions, serving automakers worldwide.

Bottom Line

Morgan Stanley's updated price target places renewed attention on BorgWarner's operational strategy. Investors will monitor upcoming earnings results on October 29, 2026, to gauge whether financial performance aligns with these higher expectations.