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Investing.com - DA Davidson has reiterated its Buy rating and $135.00 price target on Modine Manufacturing (NYSE:MOD) following the company’s acquisition announcement. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $122 to $155, suggesting significant upside potential from the current price of $101.23.
Modine Manufacturing has acquired Climate by Design International (CDI), a manufacturer of desiccant dehumidification technology and critical process air handlers, for a total transaction value of $65 million.
The acquisition expands Modine’s indoor air quality (IAQ) product portfolio into new markets including pharmaceutical manufacturing and healthcare through CDI’s specialized technology that provides critical humidity control in low-temperature environments.
DA Davidson noted that the deal appears logical and is expected to be accretive to earnings per share even before considering potential synergies.
The firm maintained its Buy rating and $135.00 price target on Modine Manufacturing stock following the acquisition announcement.
In other recent news, Modine Manufacturing has announced several strategic developments aimed at expanding its market presence and enhancing its financial performance. The company has acquired Climate by Design International, a move that strengthens its commercial indoor air quality solutions, particularly in sectors requiring precise humidity control. This acquisition is expected to be accretive to earnings before synergies. Additionally, Modine has entered into an agreement to acquire L.B. White, a provider of specialized heating solutions, which is anticipated to boost earnings immediately upon completion.
Analysts have responded positively to Modine’s recent activities. Oppenheimer has raised its price target for Modine to $122, maintaining an Outperform rating, while KeyBanc initiated coverage with an overweight rating and a price target of $125, citing the company’s strategic refocus on high-growth climate opportunities. DA Davidson has reiterated a Buy rating with a target of $135, highlighting Modine’s success in the data center market and its robust balance sheet. These analyst perspectives underscore confidence in Modine’s growth trajectory and market strategy. The company’s ongoing efforts in mergers and acquisitions are seen as pivotal in sustaining its expansion and meeting evolving customer needs across various sectors.
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