Analyst Matt Summerville from D.A. Davidson maintained a Buy rating on Modine (MOD – Research Report) and decreased the price target to $135.00 from $140.00.
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Matt Summerville has given his Buy rating due to a combination of factors, despite revising estimates for Modine’s Performance Technologies segment. The adjustment reflects a weaker outlook in the commercial and off-highway vehicle markets, which are significant revenue contributors for this segment. The downturn in the trucking cycle and increasing inventories have led to a more cautious forecast.
However, Summerville remains optimistic about Modine’s prospects, particularly due to the strong outlook for the data center business, which is expected to grow significantly. The company is seen as a leader in this market, and this growth is anticipated to partially offset the challenges faced in other areas. Additionally, although estimates and price targets have been lowered, the stock is still considered undervalued, with potential for substantial earnings growth once the cyclical recovery occurs in the Performance Technologies segment.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MOD in relation to earlier this year.