Forgent Power Solutions Stock Jumps on Bullish Bernstein Initiation

Shares of Forgent Power Solutions Inc. (FPS) surged in mid-day trading on October 2, gaining 6.4% after Bernstein SocGen Group initiated coverage on the stock with an Outperform rating and a $48 price target.

Bernstein Cites Untapped Growth

Analyst Chad Dillard of Bernstein set the price target, which represents approximately 29% upside from the stock's previous closing price of $37.33. In the initiation note, Dillard argued that the market has not yet fully appreciated several key earnings drivers that could deliver substantial value.

At the core of Bernstein's thesis is Forgent's position as a specialized electrical original equipment manufacturer. According to the firm, approximately 80% of the company's revenue is tied to high-growth sectors like data centers and the power grid.

Bernstein projects that FPS can achieve a 70% earnings-per-share compound annual growth rate (CAGR) through 2030, significantly higher than the Wall Street consensus forecast of around 60%. A key catalyst identified is the industry's shift toward modular data center construction, which is expected to grow from 40% to 60% of the market by 2030. This transition, Bernstein noted, increases Forgent's content opportunity by 55% to $2.8 million per megawatt as it shifts from selling individual components to providing integrated systems.

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Market Reaction

The analyst initiation provided a strong stock-specific catalyst on a broadly positive day for U.S. equities. The rally was amplified by a constructive market backdrop, with the S&P 500 gaining 0.8% and the Nasdaq Composite advancing 1.3% during the session.

Forgent shares traded as high as $40.28 intraday following the news. The stock, which went public in February 2026, remains below its 52-week high of $66.