Innio Seen Benefiting From Data Center On-Site Power Boom, Morgan Stanley Says

MT Newswires Live06-29

Innio Group (INIO) is positioned to benefit from rising demand for on-site power at data centers with its high-speed reciprocating natural gas engines expected to drive strong revenue growth and margin expansion, Morgan Stanley said Monday in a report, initiating coverage of the stock with an overweight rating.

Innio is one of the largest manufacturers of high-speed reciprocating engines, among the most attractive on-site power solutions for data centers due to their favorable economics, fuel efficiency, rapid deployment and modular design, Morgan Stanley said. The company also benefits from its Jenbacher brand, multiyear order backlog and global service network, the report said.

Morgan Stanley forecasts 24% revenue compound annual growth rates and 36% EBITDA CAGR from 2026 through 2030 as shipments increase to 9.2 gigawatts, adding that the stock does not fully reflect Innio's long-term growth prospects, pricing power and ability to maintain its leadership in the engine market.

Morgan Stanley has a $47 price target on Innio shares.

Price: 35.66, Change: -1.63, Percent Change: -4.37

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment