Street Calls of the Week
Investing.com - DA Davidson has reiterated its Buy rating and $185.00 price target on Modine Manufacturing (NYSE:MOD), which currently trades at $162.92 and has seen a remarkable 94% surge over the past six months. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with a market capitalization of $8.4 billion ahead of the company’s fiscal second-quarter 2026 earnings report scheduled for October 28.
The research firm conducted quarterly channel checks with North American contacts associated with major overhead and commercial vehicle customers to assess current market conditions. With an overall financial health score of "GREAT" on InvestingPro, and revenue growth of 6.45% in the last twelve months, the company has demonstrated solid operational performance despite market fluctuations.
DA Davidson noted some stabilization in production trends related to construction and mid-size agriculture products, though this positive development is tempered by what appears to be a continuing downturn within Class VIII vehicles.
The firm believes that both its performance technologies model and Modine’s performance technologies guidance remain "appropriately de-risked" following these channel checks.
DA Davidson’s analysis is focusing on segment profitability and potential data center opportunities, which it referred to as "DC goodness" in its research note.
In other recent news, Modine Manufacturing Company reported a 3% increase in sales for the first quarter of fiscal year 2026. The company’s adjusted earnings per share (EPS) rose by 2% compared to the previous year. Modine’s strategic focus on expanding its data center business has been highlighted as a significant growth driver, with projections indicating that data center sales could increase by over 45% in FY2026. These developments underscore the company’s ongoing efforts to enhance its business operations. Additionally, analysts are closely monitoring these trends, although there has been no recent upgrade or downgrade from major firms. Investors are paying attention to these earnings and revenue results as they consider the company’s future prospects. Modine’s recent performance reflects its strategic initiatives aimed at bolstering its market position.
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