Oppenheimer Maintains Outperform Rating on Modine Shares on 2024 Outlook

Analyst Sees Strong Growth for Automotive and HVAC Businesses

Oppenheimer analyst Colin Rusch maintained an Outperform rating on Modine shares on Tuesday and lowered his price target to $19 from $22 reflecting a more conservative EV/EBITDA multiple for 2024.

Multiple Drivers of Growth

He continues to see multiple drivers of growth for the company including share gains in the automotive segment, growth in the HVAC business and continued strength in the Building Automation Systems business.

43% Upside

Rusch's new price target implies 43% upside from the current share price. Modine shares are down about 23% year-to-date.

Quarterly Results

The analyst said that Modine's fiscal third-quarter results were in line with his estimates and consensus. He noted that the company's automotive segment continued to perform well with strong share gains in North America and Europe.