# D.A. Davidson Upgrades Franklin Electric to Buy With $135 Target By Token Post Canonical URL: https://www.tokenpost.com/news/insights/46809 Published: 2026-11-02T19:17:55.000Z Updated: 2026-11-02T19:17:55.000Z Section: Insights & Views > Mineral-extraction product sales outside the U.S. and Canada rose 71% in the third quarter. CEO Joe Ruzynski said the data-center business remained below $50 million at the time of an Oct. 28 call. D.A. Davidson upgraded Franklin Electric to Buy from Neutral and set a $135-per-share target as the pump maker posted higher third-quarter sales and sharp growth in mineral-extraction products. Franklin Electric's net sales for the quarter ended Sept. 30 totaled $633.6 million, up 9% from a year earlier. Adjusted diluted earnings per share rose 15% to $1.50 from $1.31. Sales of products for mineral-extraction applications outside the United States and Canada increased 71% year over year. CEO Joe Ruzynski called mineral extraction “a nice growth lever.” At an Oct. 28 earnings call, Ruzynski described Franklin's data-center business as “still a sub-$50 million business for us.” He said customer work was in testing and operational stand-up; the figure described the business at the time of the call. Franklin has agreed to acquire Challenge Pumps, a provider of underground mine-dewatering solutions. Ruzynski said the deal would put pro forma critical-minerals and mining revenue above $100 million, with a more precise figure expected as the year closes. Franklin's Australian subsidiary signed the agreement Oct. 27. It would pay roughly $181 million in cash, subject to adjustments, and could pay up to $14 million more based on revenue after closing. Franklin anticipates closing the purchase in 2026 after Challenge Pumps completes its audit and other customary conditions are met. Franklin plans to add the business to its Water Systems segment and retain the Challenge Pumps brand. The company’s [third-quarter results and planned Challenge Pumps purchase]() included an increased 2026 outlook. The company projects that the purchase will add to adjusted earnings per share in 2027. ## Links in this article - [third-quarter results and planned Challenge Pumps purchase](https://www.tokenpost.com/news/business/43086)