SPX Technologies Scores Overweight Call with $260 Target, Sees 50% Data Center Growth
JPMorgan initiated coverage of SPX Technologies with an Overweight rating and $260 price target, citing $637.3M Q4 revenue (up 19.4%) and 50% data center growth projected for 2026. The company is investing $100M in HVAC capacity expansion to enable $700M of incremental revenue potential.
1. JPMorgan Initiates Coverage
JPMorgan has started coverage of SPX Technologies, assigning an Overweight rating and a $260 price target. The move reflects confidence in SPX’s positioning at the intersection of data center cooling and AI infrastructure demand.
2. Q4 2025 Financial Results
SPX reported Q4 revenue of $637.3 million, a 19.4% year-over-year increase, beating estimates of $625.9 million. The HVAC segment delivered $431.1 million in revenue, up 16.4%, driven by strong data center orders.
3. Capacity Investments and Growth Outlook
Management is investing $100 million in HVAC manufacturing capacity in 2026, following $92.1 million spent in FY2025. These expansions are expected to unlock approximately $700 million of additional annual revenue capacity, with $550 million tied to data center growth.
4. Broader Analyst Consensus
Other brokerages maintain a Moderate Buy consensus on SPX, with an average price target near $266.70 and no sell ratings. Recent target increases from Truist, Wells Fargo and Oppenheimer underscore the bullish sentiment toward the stock.