Overview
BofA Securities upgraded SPX Technologies (NYSE:SPXC) from Neutral to Buy and lifted its price objective to $280 from $240 on Friday. The stock last traded at $230.92, putting it close to a 52-week high of $240.30 after returning 52.56% over the prior 12 months.
BofA’s move is grounded in the firm’s view that SPX has meaningful growth runway. The bank projects approximately 20% EPS growth through 2027 and highlighted three main levers that underlie that projection: organic capacity additions, new product introductions and disciplined capital deployment.
Analyst estimates and valuation
As part of its update, BofA raised its 2026 EPS estimate for SPX Technologies by $0.69 to $8.15. That estimate compares with a consensus figure of $7.62. BofA attributed $0.39 of the lift to announced mergers and acquisitions and $0.30 to the phased contribution of capacity expansions. Over the trailing twelve months, SPX reported a basic EPS of $4.77.
InvestingPro data cited in the analyst note shows SPXC has posted revenue growth of 12.6% over the last twelve months. At the same time, the shares trade at a P/E of 49.42 on near-term earnings, a premium to current growth rates.
Balance sheet, cash deployment and drivers
SPX operates with a moderate leverage profile, carrying a debt-to-equity ratio of 0.23. The company’s market capitalization stands at $11.51 billion. According to InvestingPro analysis referenced by the bank, SPX holds an overall financial health rating described as "GREAT."
BofA singled out the company’s exposure to data center customers - which account for roughly 9% of revenue - as a positive demand channel. The firm also noted momentum from recent product launches, specifically calling out OlympusMAX as gaining traction. Mergers and acquisitions have been meaningful to the company’s EPS progression: BofA estimates M&A has contributed about one-third of EPS growth since 2022.
Recent transactions and corporate actions
SPX has recently completed the acquisition of Thermolec Ltd., a Montreal-based supplier of custom electric duct heating solutions, for approximately US$140 million in cash. Thermolec reports roughly US$35 million in annual revenue.
In addition, SPX has entered into a definitive agreement to acquire Crawford United Corporation, based in Cleveland, for around $300 million. The acquired Commercial Air-Handling Equipment segment reported sales of $81.6 million and operating profit of $22.8 million for the year ending September 30, 2025. BofA views such deals as complementary to SPX’s HVAC capabilities and as contributors to near-term EPS.
Management changes and upcoming events
The company named Daniel Whitman as its new Vice President, General Counsel & Secretary. Whitman joins after roughly two decades at Parker Hannifin. Separately, J. Randall Data, President of Global Operations and Data Center Solutions at SPX Technologies, has announced he will retire effective March 20, 2026.
SPX is slated to announce fourth-quarter results on February 24. BofA expects the company to deliver "a solid quarter and a strong guide." Investors seeking further analysis may consult the detailed Pro Research Report available through InvestingPro, which covers additional financial metrics, valuation work and analyst commentary.
Contextual note
The note also mentioned that Carvana Co is set to be added to the S&P 500 as part of the quarterly rebalance effective December 22, 2025. That item was included in the same market update but is separate from the SPX coverage.