Modine (MOD) has received a new Buy rating, initiated by UBS analyst, Neal Burk.
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Neal Burk’s rating is based on Modine’s strategic focus on the data center market, which is expected to drive significant revenue growth. The company’s 30% exposure to this sector is projected to result in a 15% average annual revenue increase through fiscal 2029, potentially leading to earnings that surpass current market expectations. This growth trajectory, coupled with Modine’s strong performance in the data center space, supports the Buy rating.
Modine has demonstrated impressive sales growth in the data center market, increasing its revenue sixfold over four years. The company’s recent achievements include a 42% year-over-year increase in data center sales and successful collaborations with major AI players. Furthermore, Modine is expanding its manufacturing capacity by over 60%, positioning itself to capitalize on the anticipated 15-20% market growth in the coming years. These factors, along with the potential for a re-rating in valuation, underpin Neal Burk’s positive outlook on Modine’s stock.
In another report released yesterday, D.A. Davidson also reiterated a Buy rating on the stock with a $200.00 price target.
MOD’s price has also changed moderately for the past six months – from $104.110 to $141.510, which is a 35.92% increase.