Madison Air Gains as 8 Analysts Launch Coverage, 75% Rate Shares Buy
Updated
Updated · Barron's · May 11
Madison Air Gains as 8 Analysts Launch Coverage, 75% Rate Shares Buy
6 articles · Updated · Barron's · May 11
Eight analysts initiated coverage of Madison Air after its IPO quiet period expired, and six issued Buy ratings, helping lift the stock 1.1% to $42.62 early Monday.
Analysts' average price target is about $47, implying roughly 12% upside from recent levels, while Vertical Research set the high target at $50.
RBC and Baird both started with Buy ratings and $48 targets, citing Madison's $3.5 billion in annual sales, strong margins and growth tied to data centers, which account for 12% of revenue.
The bullish debut on Wall Street adds to a strong post-IPO run: Madison sold shares at $27 on April 15, raised about $2.2 billion, and had already climbed 56% before Monday.
How will Madison Air defend its high margins as industrial giants pivot to the lucrative data center cooling market?
Can Madison Air's cooling technology keep pace with the extreme heat from next-generation AI chips like NVIDIA's H100?