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AI Research

LiquidStack Data Center Cooling Acquired + 12% Dividend Hike → Stock Down 8% on Valuation Concerns

Trane Technologies closed its acquisition of LiquidStack on March 3, adding direct-to-chip and immersion cooling capabilities to its thermal management portfolio for high-density data centers. The company raised its quarterly dividend by 12% to $1.05 per share and guided 2026 revenue growth of 8.5-9.5% with GAAP EPS of $14.65-$14.85. Despite the strong guidance, the stock fell 8.1% in five trading days on concerns about premium valuation and softening residential HVAC demand, with a Moderate Buy consensus from analysts and an average price target of $484.67.