Roth/MKM has initiated coverage of Modine Manufacturing (NYSE: MOD) with a Buy recommendation and a $263.00 price target, implying about a 21% increase from the referenced share price of $216.84. The brokerage firm focused its thesis on Modine’s development of thermal solutions that serve data center cooling technologies, specialty HVAC, and refrigeration, a business mix built through both organic expansion and acquisitions.
The firm’s analysis emphasizes the rapid acceleration of Modine’s data center business. Roth/MKM reports that data center revenue expanded at a 93% compound annual growth rate (CAGR) from fiscal year 2023 to fiscal year 2025. Looking ahead, the analyst projects a 64% CAGR from fiscal year 2025 to fiscal year 2027, with the company approaching $2 billion in data center revenue by that latter period.
Alongside revenue growth expectations, Roth/MKM flagged operational changes the company is implementing. The firm noted Modine’s continuous improvement initiatives, which include removing underperforming businesses and cutting costs. These measures inform the broker’s outlook for profitability - Roth/MKM projects EBITDA margin expansion to roughly 17% in fiscal year 2027.
The coverage initiation arrives amid a recent strong earnings print from Modine. The company’s fiscal third quarter of 2026 exceeded consensus estimates, delivering earnings per share of $1.19 versus a $0.99 forecast and revenue of $805 million compared with an expected $760.42 million. The better-than-expected quarter prompted Modine to raise its fiscal year 2026 guidance.
Market participants and other analysts have reacted with a series of ratings and target changes. UBS reiterated a Buy rating on Modine, highlighting accelerating data center sales and citing a 21% organic growth rate. KeyBanc Capital Markets increased its price target to $250, pointing to what it described as impressive execution in the data center business. Oppenheimer raised its price target to $240 after the stronger earnings report. DA Davidson preserved its Buy stance and set a $265 price target, revising upward its data center-related revenue growth projections for upcoming fiscal years.
Market pricing context included in the note shows Modine has already delivered notable returns to shareholders, trading up about 134.78% over the past year and currently carrying a price-to-earnings ratio of 119.48, per the cited data. Roth/MKM’s initiation and the string of analyst updates reflect growing confidence in Modine’s strategic emphasis on data center cooling, while also tying valuation and margin expectations to the company’s execution and cost rationalization plans.