Modine jumps 5% after Hunterbrook ties $4 billion deal to Google

Modine Manufacturing (NYSE:MOD) shares rose more than 5% in pre-market trading Friday after Hunterbrook Media reported the company's data center cooling pipeline could be far larger than public disclosures indicate.

Hunterbrook, whose affiliated investment firm holds a long position in Modine, said internal planning information found on GitHub points to nearly $23 billion in modeled demand from major data center customers. The report said Modine's previously unnamed $4 billion hyperscaler agreement appears to involve Google, with broader live Google demand totaling an estimated $8.2 billion, or about $6.1 billion on a probability-adjusted basis.

Amazon Web Services could represent an even larger opportunity. Hunterbrook identified roughly $12.4 billion in gross modeled AWS demand extending through 2033, including about $741 million already classified as won business. Adjusted for probability, the AWS opportunity was estimated at approximately $5.6 billion. Crusoe also appeared among the customers in the internal data.

Hunterbrook's analysis of Modine's internal pipeline pointed to about $540 million in data center revenue for the September quarter, roughly 20% above the company's existing guidance. The report also estimated fiscal 2027 data center revenue could reach approximately $2.3 billion, implying growth of more than 100%, well above Modine's current guidance range of 60% to 80%.

Shares leveled off around 2.3% higher by Friday afternoon, giving back some of the pre-market gains. The stock has more than doubled over the past year as investors bet on the AI infrastructure buildout, with data center cooling emerging as a key bottleneck for hyperscaler expansion.

Hunterbrook said the main risk appears to be execution rather than demand, citing factory capacity, engineering shortages and supplier bottlenecks. The firm also pointed to a project aimed at qualifying a 1-megawatt coolant distribution unit for Nvidia requirements, which could give Modine exposure to the liquid-cooling market.

The report's findings carry a caveat: Hunterbrook's affiliated investment firm holds a long position in Modine, a disclosure that could temper sustained gains as investors weigh the potential for bias. Modine's trailing price-to-earnings ratio stood at 73.7 times, well above its five-year median of 23.85 times, according to GuruFocus data, suggesting the market has already priced in significant growth expectations. With a market capitalization near $10.4 billion, the stock's valuation now hinges on whether Modine can convert its modeled pipeline into booked revenue through fiscal 2027.

This article is for informational purposes only and does not constitute investment advice.