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.