Modine shares rise after bullish Hunterbrook report

Investing.com -- Modine shares traded more than 5% higher in pre-market trading on Friday following a bullish report from Hunterbrook Media on the company.

Hunterbrook Media said Friday its affiliated investment firm holds a long position in Modine, stating the company's data-center cooling business may be larger than public disclosures indicate.

The firm said internal planning data found on GitHub shows nearly $23 billion of modeled data-center demand across customers including Google, Amazon Web Services and Crusoe. Hunterbrook said Modine's unnamed $4 billion hyperscaler agreement appears to be with Google, with broader live Google demand totaling about $8.2 billion, or roughly $6.1 billion on a probability-adjusted basis.

AWS could represent a larger opportunity, according to Hunterbrook, with about $12.4 billion of gross modeled demand through 2033 and roughly $741 million already classified as won. Hunterbrook estimates probability-adjusted AWS demand at about $5.6 billion.

The report said Modine's internal pipeline suggests around $540 million of data-center revenue for the September quarter, about 20% above company guidance, and roughly $2.3 billion for fiscal 2027, implying growth of more than 100% versus Modine's 60% to 80% outlook.

Hunterbrook said the main risk appears to be execution rather than demand, citing factory capacity, engineering shortages and supplier bottlenecks. The firm also pointed to a project aimed at qualifying a 1-megawatt coolant distribution unit for Nvidia requirements, which could give Modine exposure to the liquid-cooling market.

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