Goldman Sachs has upgraded BorgWarner $BWA from Neutral to Buy and raised its price target to $34. The move reflects renewed confidence in the company’s strategic positioning, particularly its strong presence in China and minimal reliance on U.S. imports—making it more resilient to tariff-related headwinds.
🔹 Roughly 20% of BorgWarner’s total revenue stems from China, and a solid 75% of that is tied to domestic Chinese original equipment manufacturers (OEMs). This deep integration with the local market gives $BWA a distinct edge, especially in the electric vehicle space, where about 90% of its Chinese eProduct business is rooted in these same domestic OEMs.
🔹 Goldman also sees upside in BorgWarner’s hybrid and internal combustion engine segments, with hybrid adoption increasing globally. The firm’s full-spectrum powertrain portfolio gives it a flexible and well-diversified growth path, particularly outside the U.S.
🔹 Despite short-term losses in its eProduct division, restructuring efforts and forward-looking investment suggest a pivot toward profitability. Higher content per vehicle—especially in hybrid and EV platforms—translates to rising long-term revenue per unit.
📈 Dividend Fundamentals
💰 $BWA offers a quarterly dividend of $0.11, totaling $0.44 annually, which equates to a yield of about 1.64%.
🧮 With a payout ratio of roughly 29%, the company retains plenty of flexibility to reinvest in growth while steadily rewarding shareholders.
📅 The next dividend payout is scheduled for June 16, 2025, with the ex-dividend date on June 2, 2025.
BorgWarner’s combination of global positioning, smart OEM alignments, and a stable dividend makes it an increasingly attractive play for investors seeking both growth and reliability.