• In recent weeks, SPX Technologies drew attention as analysts clarified that the company’s cooling tower products remain important for data center heat management, following earlier concerns about changing cooling technologies.
• This reaffirmation came alongside commentary highlighting SPX Technologies’ role in specialized HVAC and detection equipment, reinforcing its relevance across industrial, commercial, and utility infrastructure markets.
• We’ll now examine how this reaffirmed role in data center cooling shapes SPX Technologies’ broader investment narrative and future positioning.

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What Is SPX Technologies' Investment Narrative?

For SPX Technologies, the big-picture thesis rests on its role as a picks-and-shovels supplier to critical infrastructure: cooling towers for data centers, plus specialized HVAC and detection gear for industrial, commercial and utility customers. The recent selloff tied to Nvidia’s warm-water cooling comments, and subsequent analyst clarification, matters less for fundamentals than for short-term sentiment and volatility. With Wall Street reiterating that SPX’s cooling towers remain central to data center heat rejection, the near-term catalyst still looks to be Q4 2025 results on February 24 and any update on infrastructure demand. The bigger risks now feel more about execution and expectations: a premium valuation, slower forecast revenue growth than the wider US market, and insider selling all leave less room for disappointment if growth moderates or data center enthusiasm cools again.

But there is one valuation-related risk here that investors should not overlook. SPX Technologies' share price has been on the slide but might be up to 11% below fair value. Find out if it's a bargain.

Exploring Other Perspectives

Simply Wall St Community members currently bracket SPX’s fair value between about US$194 and US$236, across two separate estimates. While that range clusters tightly, it still reflects different views on how much the recent cooling-technology debate and premium earnings multiple could affect future performance. With expectations already elevated, it is worth weighing these community views against the possibility that even small disappointments on growth or margins could move the share price more than the underlying business.

Explore 2 other fair value estimates on SPX Technologies - why the stock might be worth as much as 10% more than the current price!

Build Your Own SPX Technologies Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SPX Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free SPX Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SPX Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.