First Read: Modine Manufacturing Co "First look: Margins lighter than..."

研报英文原文证据摘录

First Read: Modine Manufacturing Co "First look: Margins lighter than..."

Forecast returns

Forecast price appreciation 19.0%

Forecast dividend yield 0.0%

Forecast stock return 19.0%

Market return assumption 9.1%

Forecast excess return 9.9%

Company Description

Modine Manufacturing is a thermal management company. It has two operating segments:

Climate Solutions and Performance Technologies.

Valuation Method and Risk Statement

Our price target is based on a sum of the parts (EV/EBITDA) methodology.

Risk Statement: The Electrical Equipment and Multi Industry sector faces a broad range of

risks. It is cyclical in nature with exposure to the underlying cycles inherent in everything from

aviation, auto, trucking and trains to construction and consumer electronics to mining,

power, oil and gas and more depending on the specific stock. EEMI companies are subject to

risks associated with unexpected changes in the underlying global macro environment,

currency and interest rate movements, commodity price inflation as well as company-specific

execution, M&A, integration, labor relations and changes in the competitive or regulatory

environment. These changes can be in the form of product technology, e-commerce and

other digital disruption and/or channel disintermediation. Capacity and related pricing

pressures are also a risk through the cycle. Finally, these multinational companies are subject

to policy changes taking place in the United States and internationally, including those related

to environmental regulation and tariffs.

Specific risks to Modine include the demand for data centers, increasing competition in data

center, Modine's ability to scale its manufacturing capacity, customer in-sourcing (in heat

transfer), and the outlook for vehicle markets.