BorgWarner jumps after Jefferies initiates with a Buy
Shares of auto parts maker BorgWarner (BWA) are moving to the upside after Jefferies initiated the company with a Buy rating. WHAT'S NEW: BorgWarner is a propulsion leader propelled by increasing proliferation of internal combustion, said Jefferies analyst David Kelley in a note to investors this morning. Kelly added that internal combustion will likely be the "dominant powertrain through 2025." The analyst sees turbochargers as remaining a growth driver for the company. HYBRID/ELECTRIC VEHICLES: Kelly noted the company's acquisition of Remy sets up BorgWarner to gain share in alternative powertrain, "given a growing product portfolio of electric motors and thermal management and synergies across drivetrain and stop-start technology." Kelly, who set a $43 price target on BorgWarner shares, added that he sees the alternative powertrain mix shift to "mild hybridization" as allowing the auto parts maker to make strides "across several core product segments." PRICE ACTION: Shares of BorgWarner are advancing over 4% in afternoon trading to $35.90 per share.