Vertiv stock price target raised to $150 from $140 at BofA Securities

Investing.com - BofA Securities raised its price target on Vertiv Holdings Co. (NYSE:VRT) to $150.00 from $140.00 on Thursday, while maintaining a Buy rating on the stock. The data center infrastructure company, currently valued at $47.8 billion, has demonstrated robust financial performance with a 20.5% revenue growth over the last twelve months.

The firm cited Vertiv’s strong performance, noting that the company’s shares rallied after reporting 13% year-over-year orders growth in the first quarter of 2025.

For the second quarter, BofA forecasts $2.7 billion in orders, representing a 3% quarter-over-quarter decline but flat year-over-year on an organic constant currency basis, which would translate to a 1.14x book-to-bill ratio consistent with mid-teens revenue growth.

The investment bank projects 21% year-over-year organic revenue growth and a 19.1% adjusted operating margin for Vertiv, driving adjusted earnings per share of $0.84, slightly above the consensus estimate of $0.83.

BofA’s new price target is based on a 23x EV/EBITDA multiple on 2026 estimates, up from the previous 21x multiple, with the premium to the peer average of 18x justified by Vertiv’s above-peer earnings growth potential.

In other recent news, Vertiv has announced its agreement to acquire Great Lakes Data Racks & Cabinets for $200 million. This acquisition is expected to close in the third quarter of 2025, pending regulatory approvals, and aims to enhance Vertiv’s offerings in pre-engineered rack solutions. Meanwhile, Melius Research upgraded Vertiv’s stock from Hold to Buy, citing the acceleration of artificial intelligence spending as a key factor. In a similar vein, Citi raised its price target for Vertiv to $130, highlighting the company’s strong positioning in the expanding data center market. Vertiv also unveiled a new cooling and power design for the NVIDIA (NASDAQ:NVDA) GB300 NVL72 platform, which promises significant energy efficiency improvements. Additionally, Wolfe Research maintained its Outperform rating on Vertiv despite concerns about Amazon (NASDAQ:AMZN) Web Services adopting proprietary designs. The firm’s analysis suggests this development confirms the growing trend towards liquid cooling. Vertiv is also collaborating with NVIDIA on future data center power infrastructure, expected to be available in 2026. These recent developments reflect Vertiv’s strategic moves to strengthen its position in the critical digital infrastructure market.

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