BUZZ-UBS initates coverage on AI infrastructure companies with mixed ratings

Reuters11-21
BUZZ-UBS initates coverage on AI infrastructure companies with mixed ratings

** UBS initiates coverage on cos in the industrial data center supply chain, Hubbell HUBB.N, Modine Manufacturing MOD.N and nVent Electric NVT.N with mixed ratings

** Brokerage expects cos average operating profit to grow 50% higher than broader industrial sector

** UBS sees Hubbell’s end-market mix as favorable, with tailwinds from grid modernization and data center spending; expects mid-single-digit organic sales growth in 2026

** Says Modine’s 30% data center exposure, combined with strong AI and cloud demand, supports 15% average annual revenue growth through FY29

** UBS cites strong data center pipeline and rising power demand as key growth drivers for NVT; expects double-digit annual revenue growth through 2027

** Including session's moves, HUBB's shares flat, MOD up 27.4% and NVT up 57.2% YTD

Companies

Rating

Price target

HUBB

Neutral

$450

MOD

Buy

$173

NVT

Buy

$128

(Reporting by Megavarshini G. Somasundaram in Bengaluru)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))

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