These are top 10 stocks traded on the Robinhood UK platform in July
On Monday, Oppenheimer reaffirmed its positive stance on Modine Manufacturing (NYSE:MOD), maintaining an Outperform rating and a $145.00 price target. The stock, currently trading at $80.80, has significant upside potential according to analyst consensus, with targets ranging from $135 to $155. InvestingPro data shows the company maintains a GOOD financial health score, despite recent market volatility. In a recent fireside chat with Modine’s CEO Neil Brinker, CFO Mick Lucarelli, and IR Kathy Powers, the discussion highlighted the company’s strong prospects in data center growth. This confidence is supported by positive customer feedback, a growing list of projects, and recent business achievements. The company’s revenue grew 4.85% over the last twelve months, with a healthy gross profit margin of 24.14%.
Management is actively pursuing the PT 80/20 transformation, which is expected to lead to targeted margin improvements, even considering the lackluster performance of end-markets. The company’s approach to mitigating the impact of tariffs also seems to be effective.
The potential for mergers and acquisitions was another focal point of the conversation. According to Oppenheimer, Modine has a robust M&A pipeline, which is likely to result in value-adding customer solutions transactions within the next year. This outlook, combined with the recently announced share buyback program, suggests that the management and board see significant opportunities ahead.
Oppenheimer’s analysis indicates that the current valuation of Modine’s shares does not fully reflect the company’s potential. The firm considers Modine a top pick in its coverage, suggesting that the market may not have fully appreciated the company’s growth trajectory and strategic initiatives. According to InvestingPro analysis, the stock appears overvalued at its current P/E ratio of 26.49, though the company’s strong return on equity of 20% and robust Altman Z-Score of 6.16 indicate solid financial fundamentals. Get access to 12 additional exclusive ProTips and a comprehensive Pro Research Report for deeper insights into MOD’s valuation and growth prospects.
In other recent news, Modine Manufacturing announced a significant $180 million order for DC cooling products as part of a new partnership with an AI infrastructure developer. This development was well-received by analysts at DA Davidson, who maintained a Buy rating and a $155 price target, citing the order’s potential long-term impact. Additionally, Oppenheimer analysts upheld an Outperform rating with a $145 price target after Modine’s fiscal third-quarter 2025 results exceeded expectations, driven by the strong performance in the data center sector. The company also reaffirmed its fiscal year 2025 outlook, projecting continued growth in the data center segment through fiscal year 2027.
In leadership news, Adrian I. Peace will step down as President of Modine’s Performance Technologies segment, with CEO Neil D. Brinker assuming interim oversight. The company remains committed to its strategic plans for the segment, aiming for 15% to 18% adjusted EBITDA margins in the next two years. Meanwhile, Modine is expanding its manufacturing footprint with a new facility in Chennai, India, set to open in mid-2025. This facility will produce advanced cooling technologies for data centers and stationary power generation equipment, aligning with the rising demand in these markets. The Chennai plant will complement Modine’s existing operations in India, enhancing its ability to serve the data center industry across Asia and the Middle East.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.