Craig-Hallum initiates Thermon Group with a Buy on sizable growth opportunities

As previously reported, Craig-Hallum analyst Aaron Spychalla initiated coverage of Thermon Group (THR) with a Buy rating and $60 price target The firm sees improving business that has transformed in recent years to be more diversified, high-margin, and largely recurring, and is an emerging beneficiary of data center buildouts with new product benefiting from shift to liquid cooling. Craig-Hallum says growth can surprise to upside from base business and potentially significantly higher from data center ramp, which should also lead to an upward re-rating in shares and drive an $80-$100 stock opportunity. It is also early in Digitization strategy that benefits margins and is improving competitive position, the balance sheet is under levered with a targeted M&A strategy, and the company has been buying back stock, the firm adds.