Analyst Ratings January 30, 2026

KeyBanc Lifts Modine Manufacturing Target to $205 After Performance Technologies Spin-Off Move

Analyst upgrades and corporate transactions reinforce bullish view on Modine’s data center positioning and HVAC standalone story

By Avery Klein MOD
KeyBanc Lifts Modine Manufacturing Target to $205 After Performance Technologies Spin-Off Move
MOD

KeyBanc Capital Markets raised its price target on Modine Manufacturing to $205 from $175 while keeping an Overweight rating, citing the company’s plan to spin off its Performance Technologies (PT) division and stronger-than-expected prospects for its Data Center business. The firm revised estimates higher on a 'higher DC trajectory' and highlighted the strategic benefits of the PT separation. Other broker updates and a major deal combining PT with Gentherm have also surfaced ahead of Modine’s fiscal third-quarter 2026 earnings report on February 4.

Key Points

  • KeyBanc raised its price target on Modine to $205 from $175 and kept an Overweight rating, citing the PT spin-off and an improved Data Center growth trajectory.
  • Modine announced a transaction combining its Performance Technologies unit with Gentherm in a Reverse Morris Trust valued at about $1 billion, with Modine shareholders set to own roughly 40% of the combined company.
  • The company increased its revolving credit facility to $550 million (from $400 million) with JPMorgan Chase Bank as administrative agent; other firms (Oppenheimer and DA Davidson) have also raised or reiterated bullish ratings and targets ahead of fiscal Q3 2026 earnings on February 4.

KeyBanc Capital Markets raised its price target on Modine Manufacturing (NYSE:MOD) to $205.00 from $175.00 and maintained an Overweight rating, reflecting increased confidence in the company’s strategic direction. The new target sits just above the stock’s most recent price of $176.72 and is above the analyst high target of $200.

The analyst firm attributed the move in part to Modine’s decision to spin off its Performance Technologies (PT) division. KeyBanc described the planned separation as "a meaningful positive step in the transformation story," saying the change should let the parent company sharpen its focus on other segments.

KeyBanc analyst David Tarantino said the spin-off would permit Modine to devote more attention to "higher growth/margin Climate opportunities, namely Data Center," which the firm views as showing an improved long-term growth trajectory. On that basis the firm raised its internal estimates for Modine to reflect what it called a "higher DC trajectory."

Market performance has already been strong: Modine shares have gained 72.48% over the past year and 55.54% in the last six months. KeyBanc expressed confidence that the stock could continue to advance over the long run as investors "better appreciate the uniquely compelling Data Center positioning" and "the emergence of an attractive pure-play HVAC story."

Investors should note the company’s current P/E ratio of 50.25. A professional valuation analysis suggests the stock may be trading above its Fair Value, and that analysis also rates Modine’s financial health as "GOOD." Modine is scheduled to report fiscal third-quarter 2026 earnings on February 4, which will provide additional near-term data points for investors.

In related corporate developments, Modine announced a significant transaction involving its Performance Technologies business and Gentherm Inc. The two businesses will be combined in a deal valued at approximately $1 billion, structured as a Reverse Morris Trust transaction. Under the terms outlined, Modine shareholders would own about 40% of the combined entity.

Modine has also amended its credit agreement, expanding its revolving credit facility to $550 million from $400 million. The amended facility names JPMorgan Chase Bank as the administrative agent.

Other broker actions have followed Modine’s updates. Oppenheimer raised its price target to $220, maintaining an Outperform rating after a business update call that the firm said underscored positive developments. DA Davidson reiterated its Buy rating with a $200 price target and cited comments from NVIDIA’s CEO regarding cooling requirements for new technology as relevant context supporting confidence in Modine’s market position. DA Davidson’s remarks came ahead of the company’s fiscal third-quarter 2026 report on February 4, with the firm maintaining an optimistic stance.


Bottom line: Broker revisions and a major strategic transaction have bolstered sentiment around Modine’s positioning in data center cooling and the standalone HVAC story. KeyBanc’s raise to $205, alongside other analyst actions and a debt-facility amendment, frames a near-term period of heightened investor attention ahead of upcoming earnings.

Risks

  • Valuation risk - The company’s P/E ratio is 50.25 and an independent analysis suggests the stock may be trading above its Fair Value, which could raise downside risk for valuation-sensitive investors.
  • Execution and integration risk - The pending Reverse Morris Trust transaction with Gentherm and the spin-off of the PT division introduce integration and transaction-execution uncertainties that could affect near-term performance.
  • Market concentration risk - Modine’s increased focus on Data Center and HVAC segments exposes the company to the cyclical and technological demands of those markets, including cooling requirements tied to advancing hardware.

More from Analyst Ratings

Evercore ISI Sticks with Outperform on Apple, Sets $330 Target Backed by App Store and Services Strength Feb 2, 2026 Deutsche Bank Says AppLovin Risk-Reward Looks Better After Google’s Project Genie Shock Feb 2, 2026 Raymond James Sticks With Market Perform on American Airlines Despite Stronger Guidance and Faster Debt Paydown Feb 2, 2026 Mizuho Sticks with Outperform on Robinhood as UK ISA Launch Seen as Growth Lever Feb 2, 2026 Freedom Capital Lifts Caterpillar Price Target to $700 but Keeps Hold Rating Feb 2, 2026