FPS Stock’s Recent Correction Is ‘Overdone,’ JPMorgan Says — FY27 Outlook Implies 80%-Plus Organic Growth

• TD Cowen sees potential for a hyperscaler or large data center capacity deal for Forgent.
• JPMorgan said FPS’ FY27 revenue guidance is 20% above Street estimates at the midpoint.
• In Q4, Forgent reported $1.5 billion of bookings, pushing backlog to a record $3 billion.

Forgent Power Solutions Inc. (FPS) was in focus on Wednesday as analysts highlighted the company’s fiscal 2027 growth outlook and the potential for another major data center agreement.

TD Cowen raised its price target on Forgent to $76 from $73 and maintained a ‘Buy’ rating, according to The Fly. Analyst Michael Elias said he sees potential for Forgent to sign a capacity deal with either a hyperscaler or a large data center provider.

FPS shares traded more than 11% higher on Wednesday, as of this writing.

JPMorgan Calls Recent Selloff ‘Overdone’

JPMorgan analyst Chigusa Katoku described Forgent’s fourth-quarter (Q4) report as strong and said the company’s FY27 revenue outlook is 20% above the Street at the midpoint, according to TheFly. The guidance implies another year of more than 80% organic growth, Katoku added. 

Katoku also believes the stock’s recent correction is “overdone."

Forgent expects FY27 revenue between $2.4 billion and $2.6 billion, versus $1.42 billion in FY26. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is guided to be between $575 million and $625 million, versus $323 million last year.

Record Orders Back The Growth Outlook

The bullish commentary follows a quarter in which Forgent reported $1.5 billion of bookings, up 375% year over year, pushing backlog to a record $3 billion. Fourth-quarter revenue rose 94% year over year to $462 million. Adjusted earnings per share (EPS) came in at $0.25, beating the consensus estimate tracked by FiscalAI.

Forgent is also expanding production to meet demand. The company announced another $35 million investment in its Powertrain Solutions operation, which is expected to take total annual revenue capacity to approximately $5.8 billion by the fourth quarter of FY27.

What Retail Investors Think About FPS Stock

FPS stock was among the trending tickers on Stocktwits. Retail sentiment around the stock remained in “extremely bullish” territory amid 'extremely high' message volume.

So far this year, FPS stock has rallied more than 17%. Meanwhile, the First Trust RBA Amer Industrial Renaissance ETF (AIRR), which holds FPS shares, has risen more than 4% in the same period.

See Also: Nvidia Targets AI’s Power Bottleneck With New Alliance With Google, Emerald AI — Flexible Data Center Could Respond To Grid Conditions

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