Sep. 22 at 9:51 PM
$MOD Summary of Seeking Alpha article (18 Aug):
"I am upgrading Modine back to "Buy" as its stellar Q1 FY2026 report and massive guidance uplift have completely reshaped the prior investment thesis.
The data center business is the core growth engine, with Q1's 15% growth just a prelude to a guided 45%+ full-year surge, including an explosive 80%+ expansion in 2H.
Wall Street's negative Q2 EPS revisions seem overly pessimistic, as consensus estimates fail to fully capture management's own bullish guidance for accelerated data center growth.
Previously a major concern, the stock's valuation now appears justified by the new growth outlook, leading to a ~
$179 price target and an implied 29% upside.
Key risks involve underestimating the near-term earnings impact from heavy CapEx spending and the potential failure to achieve the targeted 100+ bps of EBITDA margin expansion."
