ℹ️ How are these calculated?
🎯 Investment Thesis
AI data center cooling thesis validated — FQ3 2026 beat with DA Davidson calling it "exceptional AI data center momentum" and raising PT to $265. DC revenue still surging with expanding funnel and win rates. Auto business spinoff remains a value-unlock catalyst. At $11.6B mcap vs Vertiv's $90.6B, still a fraction of the DC leader while growing faster. At 30x PE, no longer the cheapest cooling play, but earnings acceleration could compress the multiple.
⚠️ Key Risk
At 30x PE (trailing PE 120x), priced for perfection. Legacy auto business dragging margins until spinoff completes — timing still uncertain. Less diversified product line than Vertiv. Stock has rallied 240%+ from 52W low ($65→$220) — limited margin of safety. Only 7% below ATH. Thin analyst coverage (DA Davidson and Oppenheimer only).
By The Numbers
Event Impact
AI data center cooling pure-play. DC sales +78% YoY. Climate Solutions segment grew 30%.
No exposure to energy or defense.
No quantum relevance.
US-based manufacturing. Minor reshoring tailwind.
At 30x PE, moderate rate sensitivity. $580M debt manageable but growth multiple compresses with higher rates.
DC cooling systems are part of the energy equation — more efficient cooling reduces power demand per GPU rack.
No significant fiscal exposure.
Price Targets
Upcoming Catalysts
Competitive Landscape
Company Background
Founded 1916 in Racine, Wisconsin as an automotive parts maker. Pivoted aggressively into data center cooling in 2022-2023. The transformation story is the appeal.