Robert W. Baird & Co. Incorporated on Modine
Thesis
Baird initiated a position in Modine as another way to maintain exposure to AI-related industrial spending. The investment team believes investors are underestimating how long and how strongly demand for highly engineered cooling systems could grow. Increasingly sophisticated thermal-management requirements at hyperscale AI data centers provide the central demand driver for the investment.
“we believe the market is underestimating the duration and magnitude of demand for highly engineered cooling systems”