Modine Manufacturing price target raised to $122 by Oppenheimer

Investing.com - Oppenheimer raised its price target on Modine Manufacturing (NYSE:MOD) to $122.00 from $121.00 on Tuesday, while maintaining an Outperform rating on the stock. The thermal management solutions provider, currently trading at $98.50 with a market capitalization of $5.2 billion, has demonstrated strong momentum with a "GREAT" overall financial health score according to InvestingPro analysis.

The research firm noted that MOD shares have lagged behind AI infrastructure peers in the current quarter, despite some recovery from post-fourth quarter fiscal 2025 levels, creating what it views as an investment opportunity. The company maintains healthy financials with a current ratio of 1.78 and operates with moderate debt levels.

Oppenheimer believes investor focus currently centers on potential upside or downside to Modine’s forecast of 30%+ data center revenue growth for fiscal year 2026, with secondary attention on margin improvement pace and divestitures.

The firm expects capacity ramp inefficiencies and challenging first-half comparisons will result in a more back-half weighted fiscal 2026 compared to previous years, but remains confident in the company’s growth trajectory.

Oppenheimer cited Modine’s recent business wins, merger and acquisition activity, and track record of "nimble 80/20 execution" as factors supporting robust multi-year growth driven by the data center segment, leading to modest increases in fiscal 2026-2027 estimates despite lowering first-quarter projections. With analyst consensus strongly bullish and 12 additional key insights available on InvestingPro, investors can access comprehensive analysis including detailed valuation metrics and growth projections.

In other recent news, Modine Manufacturing Company reported impressive financial results for the fourth quarter of fiscal year 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.12, which was above the forecasted $0.96. The company also exceeded revenue projections, achieving $647.2 million compared to the anticipated $634.49 million. Modine announced a definitive agreement to acquire L.B. White, a provider of specialized heating solutions, for an enterprise value of approximately $112 million. This acquisition is expected to be immediately accretive to Modine’s earnings and will be integrated into the company’s HVAC Technologies segment.

KeyBanc Capital Markets initiated coverage on Modine with an overweight rating, citing the company’s strategic shift toward high-growth climate opportunities, particularly in the data center sector. DA Davidson maintained a Buy rating on Modine, highlighting the company’s success in expanding its customer base in the data center market, despite challenges in the vehicular markets. The firm also noted Modine’s robust balance sheet, which supports potential mergers and acquisitions.

Modine’s President and CEO, Neil D. Brinker, emphasized the strategic fit of L.B. White’s products with Modine’s technology expertise, while Eric McGinnis, President of Climate Solutions, pointed out the synergies between the two companies. The company’s outlook for fiscal 2026 includes projected sales growth of 2% to 10%, with significant growth expected in the Climate Solutions segment, particularly in data center revenue.

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