07:20 AM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month price target by $1 to $35, based on a '25 P/E of 8.0x and a discount to BWA's 5-year average forward P/E of 11.2x. We increase our '24 adjusted EPS estimate to $3.95 from $3.85 for '24, but lower '25 to $4.40 from $4.55 for '25. BWA posts Q1 adjusted EPS of $1.03 vs. $0.81 (+27%), ahead of the $0.87 consensus. The beat was driven by the top line, as revenue rose 6% to $3.60B ($90M ahead of consensus) and gross margin expanded 80 bps to 17.9% (40 bps below consensus). BWA raised 2024 adjusted EPS guidance to $3.80-$4.15 from $3.65-$4.00, though its prior net sales and margin guidance were unchanged. BWA also announced an additional share repurchase authorization of $500M after buying back $100M of stock in Q1. We maintain a Hold, as EV growth remains a significant part of the BWA story, and while its guidance for 2024 eProduct sales of $2.5B-$2.8B (+25%-40% Y/Y) was unchanged, we think the growing popularity of hybrid vehicles could have a direct impact on BWA's growth trajectory.