KeyBanc Capital Markets has increased its price objective on Modine Manufacturing (NYSE: MOD) to $250.00 from $205.00 while retaining an Overweight rating, following the company’s fiscal third-quarter 2026 results. The stock is trading around $214.37 and has risen more than 110% over the past year, including a gain of over 11% in the last week.
The boost in KeyBanc’s valuation stems from what the firm described as Modine’s strong execution in ramping up its data center business. KeyBanc called that execution "impressive," a characterization that followed a company update issued the prior week. The research note emphasized that Modine has shown meaningful progress expanding capacity, which is enabling greater data center sales and producing sequential margin improvement.
In its commentary, KeyBanc said that despite the stock having "re-rated meaningfully," the firm still sees the company’s "uniquely compelling Data Center positioning and emerging pure-play Climate story" as underappreciated in the market. The new $250 target is based on KeyBanc’s updated sum-of-the-parts valuation and reflects the broker’s raised estimates for Modine.
Modine’s fiscal third-quarter 2026 financial results provided the backdrop for the revisions. The company reported earnings per share of $1.19, topping analyst estimates of $0.99 by 20.2%. Revenue for the quarter came in at $805 million, exceeding the expected $760.42 million. Management attributed 21% organic growth largely to momentum in the data center segment.
Following Modine’s results, other firms also adjusted their views. Oppenheimer raised its price target to $240 while maintaining an Outperform rating, and UBS reiterated a Buy rating with a $210 price target, citing expanding data center sales and margin improvement. Modine subsequently raised its fiscal year 2026 guidance.
Taken together, these developments underscore the company’s stronger performance within the industrial thermal management sector and the attention its data center franchise is drawing from the sell-side. KeyBanc’s note tied valuation upside to both execution on capacity expansion and the observed sequential margin gains in the data center line of business.
What this means
The price-target increase and maintained Overweight rating reflect a reassessment of Modine’s growth trajectory anchored in its data center operations, along with raised internal estimates and a refreshed valuation approach by KeyBanc.