Forgent Power Solutions jumps 6.4% after Bernstein initiates coverage with Outperform rating

Forgent Power Solutions Inc shares rose 6.4% in afternoon trading after Bernstein SocGen Group initiated coverage with an Outperform rating and a $48 price target, implying roughly 29% upside from the prior session's close of $37.33. Analyst Chad Dillard argued public markets have not fully priced in three structural earnings drivers, citing FPS's position as a pure-play electrical OEM with about 80% of revenue from data centers and the power grid. Bernstein expects 70% compound annual EPS growth through 2030, above Wall Street's consensus of about 60%, driven partly by modular data center construction growing from 40% to 60% of the market by 2030, increasing FPS's content opportunity by 55% to $2.8 million per megawatt. The initiation occurred amid a broadly constructive market, with the S&P 500 up 0.8%, Nasdaq up 1.3%, and Dow Jones up 0.4% following a major jobs report. The stock traded as high as $40.28 intraday but remains well below its 52-week high of $66, with existing analyst consensus already at Moderate Buy.