Why Modine Manufacturing Stock Was Motoring Higher This Week

Thermal management solutions specialist Modine Manufacturing (NYSE: MOD) was manufacturing healthy growth over the past few days, as far as its stock is concerned. Thanks largely to two positive new analyst notes, the company's shares were trading well in the black week-to-date as of late session trading on Friday. According to data compiled by S&P Global Market Intelligence, they were up by 8%.

Two bulls update their takes

DA Davidson's Matt Summerville was the first to turn up the thermostat on Modine Wednesday morning. He published an update reiterating his buy recommendation on the industrial stock, and $200 per share price target.

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According to reports, Summerville's new take followed meetings with Modine's CEO and other top figures at the company. In his view, the company is in front of several years of significant fundamental growth thanks to sustainable demand for the types of solutions it offers, and its knack for innovation.

The following day, Summerville's peer Neal Burk of international bank UBS also weighed in with an upbeat Modine analysis. Burk initiated coverage of the stock with a buy recommendation and $173 per share fair value assessment.

Involved in a high-growth business

Modine is worthy of attention because it is a go-to supplier of cooling systems for data centers. These are currently undergoing a period of heavy investment, largely due to artificial intelligence (AI) -- this technology is relatively resource-intensive, hence the need for modifying existing facilities or constructing new ones.

I feel that trend has quite some distance to run, so Modine is indeed very well placed to capitalize on it. I'd be quite bullish on the company's future, too.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Modine Manufacturing. The Motley Fool has a disclosure policy.