Key Highlights
- Belimo (BEAN) stock climbed approximately 8% to CHF 941 following Morgan Stanley’s upgrade from “equal-weight” to “overweight”
- Morgan Stanley increased its price objective to CHF 1,100 from CHF 860, citing expanding data center cooling requirements
- Data center operations represented 17% of Belimo’s fiscal 2025 revenue and contributed approximately 50% of overall company expansion
- Analysts forecast data center-related income could comprise 38% of aggregate revenues by decade’s end
- Hyperscaler infrastructure spending projections increased 7% for 2026 and 18% for 2027
Shares of Belimo Holding rallied approximately 8% during Monday’s session, reaching CHF 941, following Morgan Stanley’s decision to elevate the Swiss valve manufacturer’s rating and boost its price objective to CHF 1,100 from CHF 860.
The brokerage firm elevated its stance from “equal-weight” to “overweight,” identifying the artificial intelligence-driven data center expansion as the primary catalyst for the positive reassessment.
Data center operations generated 17% of Belimo’s CHF 1.12 billion in fiscal 2025 revenue, climbing from 11% during the previous year. This division fueled roughly 50% of the company’s overall expansion last year, with Morgan Stanley calculating that data center-related revenue expanded over 70% on a year-over-year basis in 2025.
The investment bank anticipates data center operations will generate more than half of the company’s growth for no less than the coming three years, ultimately reaching 38% of aggregate revenue by 2030.
Liquid Cooling Technology Creates Opportunity for Belimo
The transition from traditional air-based cooling systems to liquid cooling infrastructure in AI-focused data centers represents the foundation of Morgan Stanley’s investment case. This technological evolution steers demand toward Belimo’s premium product offerings.
Belimo’s Energy Valve commands approximately $1,200 per unit, significantly exceeding the company’s average product price point of $130 to $150. Control valve sales expanded 31.3% in local currency terms during fiscal 2025, substantially outperforming damper actuators which grew 14.4%.
Company leadership emphasized during the 2025 earnings conference that within the premium cooling category — particularly for processors demanding direct liquid cooling technology — Belimo maintains “an almost dominant market share.”
Morgan Stanley additionally adjusted its projections for U.S. hyperscaler cloud infrastructure capital expenditures upward by 7% for 2026 and 18% for 2027 after analyzing first-quarter financial results. The firm currently anticipates 82% year-over-year capital spending growth in 2026 reaching $815 billion, followed by 38% expansion in 2027 to $1.13 trillion.
Financial Performance Projections
Morgan Stanley anticipates Belimo’s revenue will climb to CHF 1.31 billion in fiscal 2026, CHF 1.53 billion in 2027, and CHF 1.78 billion in 2028.
Per-share earnings forecasts stand at CHF 18.33, CHF 22.42, and CHF 26.20 for these corresponding years. The investment bank’s projections exceed consensus estimates by 2% for 2026, expanding to 9% above consensus by 2028 and 20% by 2030.
Shares currently trade at 47.7 times Morgan Stanley’s fiscal 2026 earnings projection. The firm contends that when adjusted for growth rates, Belimo appears more attractively valued than ABB, Siemens, Halma, and IMI.
Morgan Stanley established a bullish scenario target of CHF 1,510 and a bearish scenario of CHF 600.
The primary downside concern identified involves potential modifications to data center architecture that might incorporate additional liquid-cooling components directly within coolant distribution systems, potentially diminishing Belimo’s independent specification authority.
Monday’s price appreciation positions the stock near its 52-week peak of CHF 975. Belimo’s preliminary 2026 trading announcement, which revealed higher sales compared to the equivalent prior-year timeframe, provided additional support for the upgrade decision.
