Shares of Belimo Holding AG jumped about 10% following a bullish research note from Barclays that highlighted the company’s increasing exposure to demand for liquid cooling solutions used in AI-driven data centres.
Published as a "Catalyst Alert" in advance of Belimo’s first-half 2026 earnings, the Barclays note contends that the market is underestimating both the scale and the margin profile of Belimo’s liquid cooling business. The bank framed the company’s trajectory as a shift away from being seen solely as a traditional HVAC supplier toward becoming a direct beneficiary of AI infrastructure spending.
Barclays estimates that roughly 20% of Belimo’s revenues are tied to data-centre activity, with the majority of that exposure linked to liquid cooling technologies. The report emphasises that liquid cooling systems typically involve higher margins and more specialised technical specifications compared with conventional HVAC products, which Barclays says creates meaningful "earnings torque" as the company’s mix tilts toward AI-related work.
According to the analysts, prevailing market perceptions still place Belimo primarily in the cyclical HVAC bucket rather than recognising its role in supporting AI infrastructure. Barclays argues that this perception gap has caused Belimo’s stock to lag peers that are viewed as having comparable exposure to data-centre growth trends, naming Schneider Electric, ABB, Legrand and Prysmian as examples of companies that have outperformed.
Barclays maintained an "Overweight" rating on Belimo and set a price target of CHF 1,000. That target implies nearly 27% upside from the stock’s closing price of CHF 788.50 on 13 May 2026.
On the earnings front, Barclays said its forecasts are already above consensus, being around 7% higher than consensus EBIT for fiscal 2026 and about 30% ahead of consensus for 2028 estimates. The bank also pointed out that Belimo’s valuation premium to the broader European capital goods sector has contracted to the lowest level observed since the COVID-19 period, a gap Barclays believes does not reflect the firm’s long-term AI-driven growth prospects.
The Barclays note and the subsequent share-price move underscore investor focus on companies that supply specialised cooling for high-performance computing environments. For Belimo, that focus translates into a possible reclassification of its growth and margin outlook as data-centre related demand becomes a larger portion of revenue.
Context and implications
While the Barclays note does not assert immediate changes to Belimo’s business model, it frames the company as increasingly linked to AI infrastructure through liquid cooling technology. The note suggests higher margin profiles and stronger earnings potential if the data-centre portion of sales continues to expand as estimated.