Optimistic Buy Rating for Modine Driven by Strong Data Center Performance and Strategic Positioning

William Blair analyst Brian Drab has maintained their bullish stance on MOD stock, giving a Buy rating on May 20.

Brian Drab’s rating is based on Modine’s strong performance in the data center business and its potential for future growth. Despite a weaker-than-expected fiscal 2026 outlook, particularly in the engine business, Modine’s revenue and adjusted EPS in the fourth quarter exceeded consensus estimates. The company’s fiscal 2026 guidance suggests a potential increase in revenue and adjusted EBITDA, aligning closely with market expectations.
While there are challenges in the European data center market, Modine’s management anticipates a temporary slowdown, with strong long-term growth prospects. The North American market remains robust, and recent significant orders in Texas from a neocloud provider highlight Modine’s strategic positioning in the AI and machine-learning sector. These factors contribute to the optimistic outlook for Modine, justifying the Buy rating.

In another report released on May 20, D.A. Davidson also assigned a Buy rating to the stock with a $135.00 price target.