Street Calls of the Week
Investing.com - UBS maintained its Buy rating and $173.00 price target on Vertiv Holdings Co. (NYSE:VRT), representing 20% upside from current levels, despite the stock’s weakness following Microsoft’s cooling system announcement. The company, now valued at over $55 billion, has demonstrated remarkable momentum with a 52% surge over the past six months according to InvestingPro data.
Microsoft revealed Wednesday that it has tested a new cooling system capable of eliminating cold plates by bringing liquid coolant directly into silicon, causing Vertiv shares to decline as investors worried about potential disintermediation risks.
UBS analyst firm emphasized that Vertiv is not involved in the cold plate business that Microsoft’s innovation might affect, noting that Vertiv instead offers fluid management systems through liquid cooling loops.
Vertiv’s thermal management solutions include heat rejection units such as cooling distribution units, heat exchangers, and chillers, along with sensors and controls, according to UBS.
The research firm concluded that Microsoft’s announcement does not impact the thermal management chain associated with Vertiv’s business, finding no "valid fundamental negative read across implications" for the company’s shares.
In other recent news, Vertiv Holdings Co has declared a quarterly cash dividend of $0.0375 per share for its Class A common stock, payable on September 25, 2025. The company also announced the completion of its $200 million acquisition of Great Lakes Data Racks & Cabinets, enhancing its portfolio in data center solutions. Additionally, Vertiv has acquired Waylay NV, a Belgium-based AI software firm, as part of its strategy to bolster AI-driven monitoring and control technologies.
Rothschild Redburn has initiated coverage on Vertiv with a Neutral rating, highlighting the company’s strong position in the data center and IT markets. Meanwhile, GLJ Research has started coverage with a Sell rating, citing concerns over an AI bubble and suggesting that the current stock price reflects peak cycle economics. These developments underscore Vertiv’s ongoing efforts to expand its capabilities and adapt to evolving market conditions.
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