Munters Group (OM:MTRS): Assessing Valuation Following Major US Hyperscaler Orders for Custom Air Handlers

Munters Group (OM:MTRS) has secured multiple orders from a major US hyperscaler, valued at approximately USD 215 million, for custom Computer Room Air Handlers. Deliveries are scheduled to take place from late 2026 into early 2028.

See our latest analysis for Munters Group.

While Munters Group’s recent bookings spotlight growing demand from big tech clients, the stock itself has had a mixed ride. The 90-day share price return stands at a robust 20.2%, but over the past year, total shareholder return has slipped by 5.8%. Still, its three- and five-year total returns of 77.7% and 119.5% speak to long-term momentum building under the surface as new deals come in.

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With long-term returns looking impressive and a wave of high-profile orders rolling in, the key question for investors now is whether Munters Group shares are undervalued or if all this future growth is already priced in.

Most Popular Narrative: 16.4% Undervalued

With Munters Group’s current share price well below the narrative’s fair value estimate, the most popular analyst view signals strong upside expectation. But what’s driving this potential, and what could propel shares even higher?

Enhanced focus on sustainability and energy efficiency, including innovation in green manufacturing, smart facilities (Amesbury flagship), and product leadership (for example, chillers more than 20% more efficient than competitors), is expected to drive incremental customer demand and enable premium pricing, boosting both revenue and net margin over time.

Read the complete narrative.

Want to uncover the catalyst behind this bullish price estimate? The core narrative hinges on a surprising combination of innovative efficiency, sector megatrends, and financial momentum. The full story reveals daring growth forecasts and profit margins that could reshape expectations.

Result: Fair Value of $188 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing uncertainty in battery markets and potential competitive pressures in Asia could quickly challenge Munters Group’s growth outlook and shift sentiment.

Find out about the key risks to this Munters Group narrative.

Build Your Own Munters Group Narrative

If you see things differently or want to dive into the data yourself, you can shape your own view and create a personal narrative in just a few minutes. Do it your way

A great starting point for your Munters Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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