Even after a more than 22% surge on Wednesday, Wall Street analysts expect there's room to run for shares of BorgWarner . Driving the stock's massive single-day rally was news that the company signed a deal with TurboCell to supply a turbine generator system for artificial intelligence data centers. TurboCell is a subsidiary of data center developer Endeavour. The partnership marks a shift for BorgWarner, an auto supplier known for making powertrain components. It's a pivot many companies have made of late as investors have rewarded stocks that adapt to the AI-driven economy. Deutsche Bank on Thursday upgraded its rating on BorgWarner to buy from neutral, with a price target of $82, indicating another 24% upside for shares from Wednesday's close. Analyst Edison Yu said the potential impact on the company's revenue is large. BWA 5D mountain BWA five-day chart. "The agreement is expected to generate > $300m in revenue in 2027, which we view as a ramp-up year for what appears to be a large 2 [gigawatt] buildout designed to support multiple AI data center customers," Yu wrote. "By our estimate, if BorgWarner is involved in deploying the full amount, the revenue opportunity could be $1.5-2.0bn over multiple years, representing a material tailwind to growth." Morgan Stanley maintained its equal weight rating on BorgWarner, but hiked its price target to $60 from $49. While that represents an indicated loss from Wednesday's close, the bank said it expects the stock to trade at its elevated levels due to the data center growth opportunity. But analyst Andrew Percoco also threw some cold water on just how quickly BorgWarner may see the benefits from its pivot. "New power generation technology can require multiple years of testing at data center sites to validate cost and reliability," Percoco wrote. "With this in mind, we believe low-single digit % market share is a prudent assumption."
