SPX Technologies should be bought on weakness, says Oppenheimer

Oppenheimer analyst Bryan notes SPX Technologies (SPXC)’ shares have pulled back 9% since the company announced a $500M equity offering on August 11, with investors mulling the initial dilution of the raise, eventual uses of capital, and timeline to closing/offsetting the dilution gap. The firm expects SPX weakness to prove temporary, with renewed outperformance as investors calibrate the strength of the team’s HVAC positioning, D&M demand prospects, and incremental runway for flywheel value creation. Oppenheimer believes SPX remains well positioned for profitable growth and anticipates standout double-digit earnings/cash flow growth for the foreseeable future. The firm, which has an Outperform rating on the shares, recommends buying the dip.