AAON - Modine Manufacturing: Fade The Rally Before Buying In
2024-06-01 10:00:00 ET
Summary
- Modine Manufacturing Company has enjoyed a rapid upgrade from a small-cap to medium-cap status within a short span of one year, thanks to the aggressive 80/20 initiative and the resultant profitable growth.
- At the same time, the EV and generative AI boom have driven the demand for zero-emission/ high-density cooling solutions on multiple platforms, triggering long-term growth opportunities.
- This is significantly aided by the divestiture of low growth/ low margin businesses and the acquisition of liquid cooling technologies, tapping into the next-gen Data Center infrastructure trends.
- With Modine Manufacturing also reasonably valued compared to its thermal management/ power peers, we believe that there remains great upside potential ahead.
- Naturally, this is with the caveat that investors wait for a moderate retracement for an improved margin of safety as short interest grows and insider selling intensifies.
...
Modine Manufacturing: Fade The Rally Before Buying In