William Blair analyst Brian Drab has maintained their bullish stance on MOD stock, giving a Buy rating today.
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Brian Drab has given his Buy rating due to a combination of factors that highlight Modine’s promising future prospects. The company has reported revenue and earnings that exceeded expectations, which is a positive indicator of its financial health. Furthermore, management has raised its fiscal 2026 revenue guidance, reflecting confidence in sustained growth, particularly in the data center segment.
The data center revenue is anticipated to grow significantly, with projections now exceeding 60% growth and expectations of reaching over $2 billion by fiscal 2028. Although there is a temporary margin compression due to capacity expansion, this is seen as a short-term issue. The strength in the climate solutions segment, despite some challenges in performance technologies, supports the overall positive outlook for Modine. These factors combined justify the Buy rating as they suggest strong potential for future profitability and growth.
According to TipRanks, Drab is a 5-star analyst with an average return of 22.9% and a 65.85% success rate. Drab covers the Industrials sector, focusing on stocks such as Thermon Group Holdings, Xometry, and Donaldson Company.
In another report released today, D.A. Davidson also reiterated a Buy rating on the stock with a $185.00 price target.