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Citi raised its price target on Vertiv Holdings Co. (NYSE:VRT) to $130 from $98 while maintaining a Buy rating, citing the company’s strong positioning in the growing data center market. The data center solutions provider, currently valued at $42.29 billion, trades at a premium EV/EBITDA multiple of 25x, according to InvestingPro data.
The research firm expects significant industrial market outgrowth for Vertiv, driven by durable AI and data center-related expansion. Citi estimates global data center IT load will grow at a 14% compound annual growth rate through 2030, providing a substantial tailwind for Vertiv’s business. The company has already demonstrated strong execution with 20.45% revenue growth in the last twelve months and maintains a "GREAT" financial health score of 3.22 on InvestingPro.
Citi expressed confidence in Vertiv’s strategy to mitigate tariff headwinds over time, with the company expected to reach tariff-neutral status by the end of 2025. The firm also suggested that finalized tariffs could be less punitive than initially expected, potentially reducing anticipated headwinds.
The research note highlighted Vertiv’s strong operational leverage, which Citi believes will support "a solid runway for ramping margin expansion over time." Additionally, Citi pointed to capital deployment opportunities through accretive mergers and acquisitions or share repurchases as potential sources of earnings upside.
Based on these factors, Citi increased its EV/EBITDA target multiple for Vertiv from 16x to 21x, resulting in the new $130 price target, up from the previous $98 target. While analyst targets range from $82 to $150, InvestingPro’s Fair Value analysis suggests the stock is currently overvalued, with 12 additional exclusive ProTips available for subscribers.
In other recent news, Vertiv Holdings Co. announced a new cooling and power design for the NVIDIA (NASDAQ:NVDA) GB300 NVL72 platform, boasting significant energy efficiency improvements and faster deployment times. This development is part of Vertiv’s collaboration with NVIDIA to support future data center infrastructure. Additionally, Vertiv has appointed Mike Giresi as the new global Chief Information Officer, effective June 2025, to enhance the company’s digital strategy and customer experiences. In a separate announcement, Vertiv disclosed the upcoming retirement of CFO David Fallon, with a search for his successor underway.
Analyst firm Evercore ISI has increased its price target for Vertiv to $150, maintaining an Outperform rating, citing strong growth prospects in AI data centers. Meanwhile, JPMorgan reiterated its Overweight rating with a $100 target, noting Vertiv’s mixed financial results but highlighting its resilience amid challenging market conditions. Vertiv’s recent financial guidance remains positive, supported by strong momentum in the data center market and ongoing investments. These developments reflect Vertiv’s continued focus on innovation and strategic leadership amidst evolving industry dynamics.
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