Modine completes spinoff. DA Davidson maintains USD 330.00 target for Modine Manufacturing stock

Published on 10/02/2026 at 14:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Modine holders received 0.44619 Gentherm shares on October 1, 2026. For Modine Manufacturing stock, this means USD 156.0 million in cash.

MOD, US6078281002, Illustration mit AI erstellt.

Modine Manufacturing Company (ISIN US6078281002) completed the spinoff of its Performance Technologies business and its merger with Gentherm on October 1, 2026. As Investing.com reported, Modine shareholders received 0.44619 Gentherm shares per Modine share, while the company received a USD 156.0 million cash distribution. DA Davidson maintained its Buy rating and USD 330.00 price target for Modine Manufacturing stock on September 29, 2026, according to MarketBeat.

Spinoff changes the portfolio

The transaction separated Performance Technologies from Modine and combined that business with Gentherm through a Reverse Morris Trust transaction. The cash distribution was used to repay outstanding debt, and Modine shareholders own 43.62 percent of the combined company after closing, Investing.com reported on October 1, 2026.

The separation also gives Modine a narrower operating profile centered on data center cooling, commercial HVAC and refrigeration. The company plans a special shareholder meeting within three months to vote on a proposed name change to Modexus Solutions, while the stock is expected to retain ticker MOD on the New York Stock Exchange if approved.

Growth meets supply constraints

In the first quarter of fiscal 2027, Modine reported revenue of USD 874.10 million, up 28.00 percent from USD 682.80 million a year earlier. Adjusted earnings per share reached USD 1.53, compared with USD 1.06 in the prior-year quarter, while adjusted EBITDA rose 5.00 percent to USD 106.50 million, according to Modine.

The figures show the central trade-off in the latest report: data center sales rose 90.00 percent to USD 348.60 million, but the segment margin fell to 20.20 percent from 29.80 percent. Modine attributed the pressure to capacity expansion, supply constraints, material costs and warranty expense, making execution the key operating variable after the transaction.

Target stays above the market

DA Davidson's USD 330.00 target is 74.80 percent above the previous close cited in the September 29 analyst report. MarketBeat said seven of nine covering analysts rated Modine Buy and two rated it Hold, producing a Moderate Buy consensus with an average target of USD 320.14.

MOD was last at USD 189.21 on the NYSE on October 1, 2026 at 4:00 p.m. ET. The market capitalization was USD 10.0 billion on October 2, 2026, and the 52-week range was USD 111.18 to USD 323.25.