UBS Warburg downgraded Lear Corp. (LEA

) and Borg Warner (BWA

) to hold from buy.

Analyst Rob Hinchliffe says his downgrades are based on valuation. He notes Lear is trading at 5.7 times its enterprise value/EBITDA based on his 2003 estimate -- near the mid-point of its range of five to seven times. He also says Borg Warner is trading at 6.5 times its enterprise value/EBITDA based on 2003 estimates -- at the high end of its historical range of 4.5 to 6.5 times.

For Lear, Hinchliffe maintains his $4.00 2002 earnings per share estimate, and keeps his $4.85 2003 EPS estimate, as well as his $55 target. For Borg Warner, Hinchliffe keeps his $5.50 2002 EPS estimate, his $6.10 2003 EPS estimate and his $70 target.