FPS: Turning Up the Power

研报英文原文证据摘录

FPS: Turning Up the Power

May 14, 2026

Investment Conclusion

Forgent Power Solutions (FPS): Outperform Rating - YE26 Price Target of $54

Investment Thesis

High Leverage to Fast Growth End Markets: Forgent is a fast growing supplier of

electrical "gray space" equipment (Switchgear, Transformers, Connection

150 Systems & Prefab Solutions) primarily into data center, utility and heavy

manufacturing end markets. Management sees its $33bn TAM growing at a high

teens CAGR to reach $81bn by 2030.

100 Customer Design & Modular Capabilities are Competitive Advantages: Forgent

is heavily levered towards engineered to order systems vs. major competitors

that have traditionally offered more standardized products. We believe custom-

50 engineered and modular solutions is the direction of travel for the AI data

center market.

Capacity in Place for Significant Revenue Ramp: Forgent is in the process of 5-Feb-26 10-Feb-26 15-Feb-26 20-Feb-26 25-Feb-26 2-Mar-26 7-Mar-26 12-Mar-26 17-Mar-26 22-Mar-26 27-Mar-26 1-Apr-26 6-Apr-26 11-Apr-26 16-Apr-26 21-Apr-26 26-Apr-26 1-May-26 6-May-26 11-May-26 completing a $200m, 1.8m sq ft manufacturing capacity expansion that is

estimated to triple its production capabilities and is believed to support $5bn of

EE/MI S&P500 FPS annual revenues (vs. $882m LTM). This should enable substantially shorter lead

times vs. many competitors.

Source: Wolfe Research, FactSet Share Gain Opportunities: Forgent has demonstrated new customer wins and

Price Target Methodology expanding wallet share with existing customers, as recent acquisitions have

Bull Case expanded its TAM opportunity. Forgent has minimal exposure to the hyper-

Organic Growth (CAGR: '25-'27) 65% scaler data center segment - ~50% of the market - which could be another share