Munters Group: Well-Positioned to Benefit from the Shift to Advanced Liquid Data Center Cooling

Jefferies analyst Adela Dashian maintained a Buy rating on Munters Group AB today and set a price target of SEK195.00.

Adela Dashian’s rating is based on Munters Group AB’s favorable positioning within the evolving data center cooling landscape despite recent technological shifts. NVIDIA’s introduction of hot-water, direct-to-chip liquid cooling raises long-term questions for traditional chiller demand, but Dashian sees only a modest near-term impact on Munters because Geoclima-related chillers account for a relatively small portion of its data center turnover and the company’s offering is well diversified. The transition to high-temperature liquid cooling actually supports Munters’ strategic direction, as its SyCool solution is designed for such environments and the company is increasingly involved in critical liquid cooling infrastructure through coolant distribution units (CDUs).

Dashian also highlights Munters’ collaboration with ZutaCore to enable next-generation direct-to-chip cooling, which enhances the company’s relevance in future server-cooling architectures. While the NVIDIA announcement may trigger short-term sentiment and share price swings, she expects adoption of the new platform to be gradual, leaving meaningful continuing demand for chillers in many geographies and mission-critical facilities that require redundancy. Over the longer term, Munters’ broad portfolio across advanced cooling technologies and related services positions it to benefit as liquid cooling gains market share, supporting the Buy recommendation.

In another report released on January 2, Kepler Capital also maintained a Buy rating on the stock with a SEK200.00 price target.