- Modine Manufacturing (MOD +6.7%) is upgraded to Buy from Neutral with a $12 price target at Seaport Global Securities.
- The firm says much of its optimism revolves around MOD's SDG program, which targets 7%-8% operating margins by the end of FY 2018 vs. 4%-5% in prior years (FY 2017 begins next week) and $100M of acquired revenue intended to diversify away from core vehicular markets, among other goals.
- Seaport sees several paths for MOD to beat its new expectations, even if end markets deteriorate, and the valuation does not need to match the peer group for substantial upside in the share price.