Evercore ISI maintains Outperform on Vertiv, confident in growth

EditorLina Guerrero
Published 08/01/2025, 22:38
Evercore ISI maintains Outperform on Vertiv, confident in growth
VRT
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In conclusion, despite the dynamic nature of the data center cooling market, Evercore ISI believes that Vertiv is well-equipped to meet the increasing demand for efficient thermal and power solutions, thanks to its strong customer relationships, continuous innovation, and comprehensive product portfolio.

The firm reiterates its Outperform rating and a $150 price target for Vertiv stock. While analyst targets range from $91 to $161, InvestingPro analysis suggests the stock is currently trading above its Fair Value.

Investors can access detailed valuation metrics, 16 additional ProTips, and a comprehensive Pro Research Report covering Vertiv's growth prospects and market position through InvestingPro's premium features. While analyst targets range from $91 to $161, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access detailed valuation metrics, 16 additional ProTips, and a comprehensive Pro Research Report covering Vertiv's growth prospects and market position through InvestingPro's premium features.

In conclusion, despite the dynamic nature of the data center cooling market, Evercore ISI believes that Vertiv is well-equipped to meet the increasing demand for efficient thermal and power solutions, thanks to its strong customer relationships, continuous innovation, and comprehensive product portfolio.

The firm reiterates its Outperform rating and a $150 price target for Vertiv stock. While analyst targets range from $91 to $161, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access detailed valuation metrics, 16 additional ProTips, and a comprehensive Pro Research Report covering Vertiv's growth prospects and market position through InvestingPro's premium features.

Vertiv's leading position is underscored by its advanced technology for handling high-temperature GPUs, setting it apart from competitors. While the collaboration between Vertiv and Nvidia (NASDAQ:NVDA) isn't exclusive, Vertiv's solutions are considered more advanced than those of its rivals.

The firm also highlighted the potential rise of two-phase cooling, a method that enhances heat transfer efficiency. Vertiv has already developed a proprietary refrigerant technology in this domain, which is currently undergoing customer testing.

In conclusion, despite the dynamic nature of the data center cooling market, Evercore ISI believes that Vertiv is well-equipped to meet the increasing demand for efficient thermal and power solutions, thanks to its strong customer relationships, continuous innovation, and comprehensive product portfolio. The firm reiterates its Outperform rating and a $150 price target for Vertiv stock.

In other recent news, Vertiv Holdings (NYSE:VRT) Co. has been the subject of various financial firms' attention. Morgan Stanley (NYSE:MS) initiated coverage on Vertiv with an Overweight rating and a price target of $150, emphasizing the company's significant exposure to a high-growth sector and its strategic positioning. Barclays (LON:BARC) also began coverage with an Equal Weight rating and a $142 price target, expecting Vertiv's positive earnings per share (EPS) estimate revisions to continue.

Vertiv's recent developments include a successful repricing of its subsidiary's existing $2.1 billion Term Loan, which is anticipated to save the company approximately $5 million in annual interest expenses. The company also reported an upward revision in its organic growth compound annual growth rate (CAGR), expecting 12-14% over the period from 2024 to 2029. Vertiv anticipates approximately $14.4 billion in sales by 2029 and has increased its margin target for 2029 to about 25%.

Several financial firms have maintained positive ratings on Vertiv's stock and raised their price targets. Wolfe Research increased the price target to $149, maintaining an Outperform rating. Oppenheimer also raised its price target to $131, maintaining an Outperform rating. Mizuho (NYSE:MFG) Securities and UBS have also maintained positive ratings.

In addition to these financial developments, Vertiv announced the promotion of Scott Armul to executive vice president, global portfolio, and business units. The company also plans to expand its liquid cooling capacity by 45 times by the end of 2023.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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