GLJ Research initiated coverage of Modine Manufacturing (NYSE: MOD) with a Buy rating and a $290 price target, citing strong growth potential driven by data center infrastructure demand.
The firm said the market is underestimating Modine’s capacity expansion in North American data center cooling systems, particularly chillers, which is expected to drive accelerating growth in both revenue and EBITDA.
GLJ highlighted insights from private competitor checks and prior hyperscaler margin trends, suggesting upside potential to both management’s long-term guidance and margin expectations.
The firm projected that Modine’s Climate Solutions segment could deliver a compound annual growth rate exceeding 45% from calendar 2025 through 2028.
GLJ also expects consolidated EBITDA in fiscal 2028 to exceed current Street estimates by approximately 15%, and believes the stock is in the early stages of a potential valuation re-rating.
