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On Tuesday, Evercore ISI updated its financial outlook for Vertiv Holdings Co. (NYSE:VRT), increasing the price target to $150 from the previous $100 while maintaining an Outperform rating on the stock. Currently trading at $104.14 with a market capitalization of $39.69 billion, Vertiv has demonstrated strong momentum with a revenue growth of 20.45% in the last twelve months. The firm’s analysts see Vertiv as a strong option for investors looking to benefit from the growth in artificial intelligence data centers, including hyperscale facilities. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with technical indicators suggesting overbought conditions.
Despite potential volatility due to a focus on orders and concerns about hyperscale digestion, Evercore ISI believes that Vertiv’s stock has the potential to surpass $200 in the long term. The firm’s bullish stance is based on Vertiv’s ability to sustain high-teens revenue growth and significant margin increases, potentially leading to an earnings per share (EPS) compound annual growth rate (CAGR) of around 25% to more than $10 by calendar year 2029. This optimism is supported by Vertiv’s strong financial health score of 3.18 (rated as "GREAT" by InvestingPro), with 16+ additional ProTips available for subscribers.
Vertiv’s attractiveness, according to Evercore ISI, is bolstered by a total addressable market (TAM) of approximately $52 billion, growing at a 9-12% CAGR. Vertiv is expected to outpace the market’s growth by 300-500 basis points, particularly with hyperscale clients expanding at a rate of over 20%. The firm also highlighted Vertiv’s status as a preferred provider of services and solutions, noting the increasing importance of its services as data centers grow in complexity.
Evercore ISI pointed out Vertiv’s capabilities in liquid cooling servicing and lifecycle management, which position the company as a comprehensive provider. The shift towards liquid cooling, which is expected to account for 30% of the total thermal management market by calendar year 2028, is seen as a significant growth area for Vertiv.
Beyond thermal management, Vertiv is also recognized for its opportunities in power management, especially as AI data centers demand more equipment and move towards higher voltage infrastructure. Evercore ISI anticipates that Vertiv’s integrated systems and modular solutions will drive sustained leverage and margin expansion, with EBIT margins expected to exceed 23% by calendar year 2028. For a comprehensive analysis of Vertiv’s growth potential and market position, investors can access the detailed Pro Research Report, available exclusively on InvestingPro, which provides in-depth insights into the company’s financial health, valuation metrics, and growth prospects.
In conclusion, Evercore ISI’s analysts maintain their Outperform rating on Vertiv Holdings Co., adjusting the target to $150, with a bullish case scenario that could see the stock reaching $250.
In other recent news, Vertiv Holdings Co reported strong first-quarter 2025 financial results, exceeding analyst expectations. The company achieved an adjusted diluted earnings per share (EPS) of $0.64, surpassing the forecast of $0.61, marking a 49% increase year-over-year. Revenue also outperformed projections, reaching $2.04 billion against an anticipated $1.94 billion. This positive performance led Vertiv to raise its full-year organic sales growth guidance to 18%. In response to these results, JPMorgan maintained its Overweight rating on Vertiv with a price target of $100, citing the company’s resilience in challenging market conditions. Despite the impact of tariffs on margins, Vertiv’s strategic focus on AI infrastructure and data center solutions continues to support its growth trajectory. The company remains optimistic about navigating the complexities of the current market environment, including supply chain challenges and competitive pressures.
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