Belimo Shares Jump After Jefferies Upgrade to 'Buy' on Data Center Strength

Shares of Belimo Holding (SIX:BEAN) surged on Tuesday after Jefferies upgraded the Swiss HVAC components manufacturer to "Buy" from "Hold." The investment bank cited a more attractive entry point following a recent pullback in the stock's price, coupled with a strong outlook driven by sustained demand from the data center sector.

Analyst Upgrade Drives Shares

In response to the upgrade, Belimo's stock climbed 3.8% to 812.5 Swiss francs, outperforming the broader Swiss market. Jefferies reiterated its price target of CHF 1,035, which implies a potential upside of approximately 29% from the stock's previous closing price, according to the analyst note.

The upgrade marks a shift in sentiment from just four weeks prior, when the brokerage had downgraded the stock. Jefferies said that key concerns have since eased, leading to the more optimistic rating.

Data Center Demand Fuels Growth

The upgrade was supported by Belimo's stronger-than-expected first-half results, which Jefferies said reinforced its confidence in the company's long-term growth prospects. The data center business was highlighted as the primary engine of this growth, with sales in the segment surging 77% year-over-year.

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Key performance metrics from the first half include:

• Organic sales growth: +30% year-over-year
• Underlying volume and mix: +23%
• Pricing contribution: +7%, following two rounds of price increases

Improved Outlook for Second Half

Jefferies noted that risks related to gross margins and foreign exchange have diminished for the second half of the year. The firm also cited improving visibility on orders from hyperscale cloud providers and continued momentum in AI infrastructure investment.

As a result, the brokerage modestly raised its revenue and earnings estimates for 2026 through 2028. For the full year 2026, Jefferies now forecasts sales growth of 17% and an EBIT margin of 22.1%, supported by the rising adoption of liquid-cooling technologies in data centers.