BorgWarner's Core Auto Growth, Data-Center Power Opportunity Could Drive Upside, BofA Says

10:53 AM EDT, 10/15/2026 (MT Newswires) -- BorgWarner's (BWA) core auto business is poised to accelerate in 2027 and 2028, while its push into data-center power generation could provide additional upside, BofA Securities said in a report Thursday. BorgWarner should return to positive growth over the market as more foundational product awards begin launching in 2027, following several years in which electric-vehicle programs weighed on growth. Foundational programs now account for about 58% of announced wins year to date, the report said. The firm sees BorgWarner's turbine generator system as its most tangible near-term non-auto opportunity, with AI-driven data-center power demand creating a potential new growth avenue. BofA expects BorgWarner to reach 2 gigawatts of capacity by the end of 2028 and said additional capacity could be announced in early 2027. The investment firm said the recent 24% pullback in BorgWarner shares from their highs represents an attractive opportunity and expects organic sales growth to meaningfully accelerate in 2027 and 2028. BofA upgraded BorgWarner to buy from neutral and raised its price objective to $85 from $78. Price: 58.09, Change: -0.41, Percent Change: -0.71