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Investing.com - Rothschild Redburn initiated coverage on Vertiv Holdings Co (NYSE:VRT) with a Neutral rating and a $135.00 price target on Wednesday. According to InvestingPro data, Vertiv’s stock has delivered an impressive 68.9% return over the past year, with current analysis suggesting the stock is trading above its Fair Value.
The research firm cited Vertiv’s strong position as a leading provider of equipment and services for data center, enterprise, and distributed IT markets, noting the company is well positioned to benefit from increasing artificial intelligence-driven capital investments. The company maintains a strong financial health score of "GREAT" on InvestingPro, with liquid assets exceeding short-term obligations.
Rothschild Redburn projects Vertiv will generate revenue compound annual growth rates of 16% and earnings per share compound annual growth rates of 25% from fiscal year 2024 through 2029.
The firm’s fiscal year 2024-2029 estimates stand only slightly above consensus expectations, with target fiscal year 2026 EV/EBITDA and P/E multiples of 18.9x and 25.4x respectively.
Rothschild Redburn believes these multiples appropriately reflect the outlook within what it describes as an evenly balanced risk-reward profile for the data center infrastructure company.
In other recent news, Vertiv Holdings Co reported a robust second-quarter performance for 2025, with earnings per share reaching $0.95, significantly surpassing the forecasted $0.83. The company’s revenue also exceeded expectations, totaling $2.64 billion against a projected $2.35 billion. This strong financial performance has led to increased investor interest and optimism. Additionally, Mizuho (NYSE:MFG) raised its price target for Vertiv to $165, up from $150, citing strong growth, particularly in the Americas region, where organic growth hit 43% in the second quarter. Oppenheimer also increased its price target for Vertiv to $151, highlighting the company’s outperformance in AI growth and its guidance for the second half of the year, which exceeded Street estimates. Conversely, GLJ Research initiated coverage with a Sell rating, expressing concerns about the current stock price reflecting peak cycle economics for 2027-2028. These developments reflect diverse analyst perspectives on Vertiv’s future trajectory.
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