Oppenheimer Raises SPX Technologies Price Target to $197, Maintains Outperform Rating

Oppenheimer raised the price target on SPX Technologies to $197 from $170, maintaining an Outperform rating. The firm expects further outperformance due to the company's favorable revenue mix, strong HVAC positioning, and incremental runway for flywheel value creation. Oppenheimer anticipates SPX will achieve its 2025 guidance ranges with HVAC outgrowth, D&M recovery, CI traction, and incremental M&A driving earnings and cash flow growth.

Oppenheimer & Co. has raised its price target on SPX Technologies (SPXC) to $197 from $170, maintaining an "Outperform" rating. The firm expects SPX to continue its strong performance, driven by favorable revenue mix, robust HVAC positioning, and incremental runway for flywheel value creation. Oppenheimer anticipates SPX will meet its 2025 guidance ranges, with growth in HVAC, Detection & Measurement (D&M), and Communications Intelligence (CI) segments, as well as incremental mergers and acquisitions (M&A) activities driving earnings and cash flow growth.

SPX Technologies is well-positioned in the heating, ventilation, and air conditioning (HVAC) market, with institutional demand across healthcare, pharmaceuticals, and education sectors. The company's exposure to data centers through its cooling tower and engineered air movement technologies is expected to double in 2024. Oppenheimer notes that the HVAC growth is driven by institutional demand and is more sustainable and visible.

The Detection & Measurement (D&M) segment is expected to reaccelerate, supported by infrastructure investments in energy, utilities, transportation, and water, as well as higher defense spending. SPX has completed strategic acquisitions, including Sigma Heating and Cooling and Omega Heat Pump, for about $144 million, and Kranze Technology Solutions earlier this year. These acquisitions are expected to drive earnings and cash flow growth.

Oppenheimer highlights that SPX's strategic capital deployment, including two high-fit deals closed this year and continued M&A activities, is a potential upside driver. The firm's outperform rating and raised price target reflect its confidence in SPX's ability to achieve its 2025 guidance ranges and continue its strong performance.

References:

[1] https://finance.yahoo.com/news/spx-technologies-positioned-continued-outperformance-154051001.html
[2] https://www.stocktitan.net/news/SPXC/