Modine upgraded to outperform

Racine-based Modine Manufacturing Inc. has been upgraded from “neutral” to “outperform” rating by analysts at Milwaukee-based Robert W. Baird & Co. Inc.

Baird has a new $19 per share price objective for Modine’s stock, up from a previous price objective of $13.

The thermal management system and component manufacturer, which serves the automotive, commercial truck, industrial and building markets, has reached the end of an extensive four to five year transformation process, Baird said.

The transformation has comprised repositioning its product portfolio, right-sizing its manufacturing operations and securing new orders for higher return systems and modules.

“Early evidence of these actions and end-market tailwinds kicking in should allow Modine to sustain high rate of growth over next several years,” the report said. “Furthermore, valuation appears very attractive with shares at 30-40 percent discount to group, stable balance sheet, improving free cash profile.”

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