US Electrical Equipment & Multi-Industry "EE/MI Morning Note - Call at 11am ..."

Research evidence excerpt

US Electrical Equipment & Multi-Industry "EE/MI Morning Note - Call at 11am ..."

Global Research

28 May 2026ab

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note - Call at 11am today, MOD,

Richmond Fed Industrial, Diversified

Amit Mehrotra

Analyst

amit.mehrotra@ubs.com

REMINDER- We're hosting our weekly UBS Industrials call today at 11am, where we'll +1-201-352 1410

discuss what's most top of mind for the sector. Click here to register for the call.

Neal Burk

MOD- Following F4Q results and the announcement of a $4 billion long-term neal.burk@ubs.com

agreement with a data center customer, we reiterate our Buy rating and raise our price +1-212-713 4066

target on growing confidence in Modine's multi-year growth trajectory. The bottom line Pratap Singh

is that we think that over time, consensus forecasts will be revised higher, which Analyst

combined with a relatively low valuation (we estimate the Climate business is being pratap-za.singh@ubs.com

valued at 16x our FY28E EBITDA), signals potential upside to the current share price. +1-212-821 3112

Zachary Walljasper

In our report yesterday (link) we included analysis of Modine's data center revenue Associate Analyst

potential over the next three years. Under what we view as fairly conservative zachary.walljasper@ubs.com

+1-212-713 9829

assumptions, we think sales could reach $4.5 billion by FY29E, vs $1.1 billion today. Our

analysis suggests that management's growth outlook of 60-80% in FY27 and 50-70%

in FY28 embeds some conservatism, and that consensus forecasts are likely to be revised

higher over the coming quarters (our FY28E Climate revenues are 15% above

consensus).

Projecting data center sales of $3.4 billion in FY28E, $4.5 billion in FY29E: Our