Data Center Cooling Compounder - Upgrade to Overweight
Report Coverage
- Broker
- Morgan Stanley
- Region
- Switzerland
- Sector
- Information Technology
- Report Type
- Company Report
- Primary Focus
- Belimo DC cooling revenue growth and upgrade to Overweight
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Report Summary
Morgan Stanley upgrades Belimo to Overweight with a CHF 1,100 PT (22% upside), driven by three DC tailwinds: AI build-out extending volume runway with hyperscaler capex +82% YoY for 2026e, liquid cooling lifting content per MW, and faster replacement cycles compressing from 25 years to under 10 in DC applications. DCs were 17% of sales in 2025 (up from 11% in 2024), driving ~50% of group growth.
Key Takeaways
- DCs were 17% of Belimo sales in 2025 (up from 11% in 2024), drove ~50% of group growth, DC revenue >70% YoY
- AI build-out: MS Cloud capex by hyperscalers +82% YoY 2026e, +38% 2027e
- Liquid cooling lifts content per MW: Energy Valve $1,200 vs group ASP $130-150; FY25 control valves +31% LC
- DC replacement cycle compresses from ~25 years to under 10 years
- MSe FY26e revenue +2% vs consensus, +9% by 2028, +20% by 2030; DC ~38% of sales by 2030e
- 39x FY26e EV/EBIT premium justified by scarcity, net-cash, mid-30s ROCE, structural mix improvement
Why This Report Matters
Belimo is a rare pure-play DC cooling beneficiary with structural mix shift toward higher-value products among European industrials.
Topics Covered
Companies Mentioned
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This summary is for users researching the Morgan Stanley Data Center Cooling Compounder - Upgrade to Overweight report. It helps users review Data Center Cooling Compounder - Upgrade to Overweight coverage, key takeaways, and related broker or sector research paths across Data Center Cooling, Liquid Cooling Technology, HVAC Valves and Actuators; Belimo Holding AG.
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