Modine stock rises 89% YTD on booming data center and AI demand, plans spin-off to focus on thermal tech.

Modine's stock has surged 89% year-to-date, driven by strong demand in data center cooling and AI-related markets, with data center cooling revenue up 78% last quarter. The company plans to spin off its underperforming Performance Technologies segment to become a pure-play data center thermal technology firm, expected to trade at about 35x EV/EBITDA. Climate Solutions is projected to grow 50-70% over two years, with data center revenue forecasted to exceed $2 billion by fiscal year 2028. Despite a 14% upside to a $308 target, Modine's high valuation and reliance on data center and AI market sentiment make it a hold rather than a buy for investors.