Matt Summerville, an analyst from D.A. Davidson, maintained the Buy rating on Modine. The associated price target remains the same with $135.00.
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Matt Summerville has given his Buy rating due to a combination of factors, primarily centered around Modine’s recent $100 million investment in expanding its data center capacity in North America. This investment is set to enhance their manufacturing facilities and increase production, driven by unprecedented demand from the U.S. market. The expansion highlights Modine’s ability to differentiate itself with purpose-built thermal management systems tailored for major clients like Google, which is expected to commercialize soon.
Additionally, Modine’s strategic expansion includes new sites in Texas and further development in Grenada, Mississippi, alongside repurposing existing plants in Missouri and Wisconsin for data center production. With projections indicating the potential to reach $2 billion in data center revenue by FY28, and an estimated $130-$140 million in incremental EBITDA, Summerville anticipates a significant increase in market value. This, coupled with the need to raise guidance based on recent deals and positive insights from a recent site visit, underpins his confidence in Modine’s future performance.
According to TipRanks, Summerville is a 5-star analyst with an average return of 12.4% and a 53.80% success rate. Summerville covers the Industrials sector, focusing on stocks such as Crane Company, Ametek, and Hillenbrand.
In another report released on July 24, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $111.00 price target.