A Look at SPX Technologies (SPXC) Valuation Following Strong Q3 Results and Upgraded Guidance

SPX Technologies delivered quarterly earnings that outperformed expectations, reporting double-digit revenue growth and raising its 2025 adjusted EPS guidance. Investors took notice because management cited operational efficiencies and recent acquisitions as key drivers.

See our latest analysis for SPX Technologies.

Following its impressive quarterly results and raised guidance, SPX Technologies saw a sharp re-rating from investors. The stock’s 53.2% year-to-date share price return and three-year total shareholder return of 219.9% highlight both short- and long-term momentum. This suggests confidence in the company’s growth trajectory is building.

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Yet with SPX Technologies’ strong rally and shares now trading close to analyst price targets, investors may wonder whether the recent surge leaves more room for upside or if the stock already reflects future growth prospects.

Most Popular Narrative: 8.6% Overvalued

SPX Technologies' most followed valuation narrative suggests the stock trades above its estimated fair value, with a narrative-derived fair value of $206.15 compared to the last close of $223.89. This viewpoint sets up a debate over whether current expectations are already fully embedded in the price.

Expansion in data center cooling solutions, highlighted by the new OlympusV Max launch, which addresses the rapidly growing demand for energy-efficient, large-scale data center infrastructure, positions SPX to meaningfully expand its addressable market and top-line growth as hyperscale projects accelerate into 2026. This is expected to support both revenue and margin improvement due to product differentiation and high-engineering requirements.

Read the complete narrative.

Want to know the key assumptions behind these premium expectations? The narrative prices in rapid growth, future margins approaching industry standouts, and a bold call on market demand. Can this company hit those ambitious targets, or are expectations running hotter than the product pipeline? Dive into the full narrative to unpack the calculations and the big swings behind this valuation call.

Result: Fair Value of $206.15 (OVERVALUED)

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

However, near-term revenue could prove volatile if large project timing shifts occur, and integration missteps on acquisitions may pressure future margins.

Find out about the key risks to this SPX Technologies narrative.

Build Your Own SPX Technologies Narrative

If you have a different perspective on SPX Technologies or want to analyze the fundamentals hands-on, you can craft your personal narrative in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding SPX Technologies.

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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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