JOLTS Job Openings (Jun) 7.44M vs 7.5M Expected
On Wednesday, Oppenheimer analysts maintained an Outperform rating on Modine Manufacturing (NYSE:MOD) shares with a $145.00 price target. The company, currently trading at $105.14 with a market capitalization of $5.52 billion, has delivered an impressive 54.85% return over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels. The company’s stock rose following the announcement of its fiscal third-quarter 2025 results, which surpassed both top and bottom-line consensus expectations, driven by strong performance in the data center vertical. With an EBITDA of $359.4 million and revenue growth of 4.85%, Modine also confirmed its outlook for fiscal year 2025. InvestingPro data shows the company maintains a GOOD financial health score of 2.78, suggesting solid operational performance.
The positive market response comes after a recent downturn in Modine’s stock price due to concerns related to its DeepSeek technology. However, management has confidently reaffirmed its growth projections for the data center segment through fiscal year 2027. Analysts at Oppenheimer believe that the sales cycle for data centers provides clear visibility for growth in the next 12 to 18 months, offering a solid foundation for near-term guidance.
Despite facing revenue pressures in more cyclical end-markets, Modine is actively pursuing optimization efforts through its 80/20 strategy. These efforts are expected to continue enhancing the company’s profit margins and support its stock valuation. Oppenheimer has reiterated its forecast for Modine’s fiscal year 2026 EBITDA (earnings before interest, taxes, depreciation, and amortization), indicating a potential for the company’s shares to move toward the $145 price target. Analyst targets currently range from $135 to $155, with a strong consensus recommendation of 1.57 (Buy). For deeper insights into Modine’s valuation and growth prospects, check out the comprehensive research available on InvestingPro.
In other recent news, Modine Manufacturing Company has revealed plans to open a new manufacturing facility in Chennai, India, by mid-2025. This facility will produce advanced cooling technologies for data centers and stationary power generation equipment, under the Airedale by Modine™ brand. This strategic expansion is part of Modine’s response to the growing demand for data center cooling solutions, fueled by the rise in high-performance computing and AI. The Chennai facility will augment Modine’s global manufacturing presence, which recently saw additions in Calgary, Canada, and Bradford, UK.
Neil D. Brinker, President and CEO of Modine, underscored the strategic nature of this expansion, citing India’s thriving economy, skilled labor, and enhanced connectivity as key to serving the data center industry in India, Asia, and the Middle East. Art Laszlo, Group Vice President of Global Data Centers at Modine, highlighted the company’s commitment to research and development to meet the unique cooling needs of data centers across different regions. Matthew Powell, Vice President and General Manager of Air-Cooled Applications, noted that the new facility would also enhance Modine’s ability to supply cooling modules for stationary power generation, vital for primary and backup power at data center campuses. This will be Modine’s second facility in India, supplementing the existing Modine Thermal Systems India.
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