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Investing.com - Evercore ISI has raised its price target on Vertiv Holdings Co. (NYSE:VRT) to $210 from $200 while maintaining an Outperform rating following the company’s strong quarterly results. The stock, currently trading at $166.82, has delivered an impressive 142% return over the past six months. According to InvestingPro analysis, Vertiv is trading at premium multiples with a P/E ratio of 79.5x.
Vertiv reported third-quarter revenue of $2.67 billion and earnings per share of $1.24, exceeding analyst expectations of $2.58 billion and $0.98, respectively. The company achieved impressive organic revenue growth of approximately 28% year-over-year, driven by strength in North America (+43%) and APAC (+21%), partially offset by weakness in EMEA (-4%). InvestingPro data shows the company maintains a "GREAT" financial health score of 3.33, with revenue growing at 26.31% over the last twelve months.
Orders surged 60% in the third quarter, fueled by strong AI data center engagements totaling approximately $3.75 billion. This resulted in a book-to-bill ratio of 1.4x and a backlog of $9.5 billion, with Evercore ISI noting that Vertiv’s backlog consists of firm purchase orders.
For the December quarter, Vertiv guided for approximately 20% organic growth to $2.85 billion and earnings per share of $1.26, implying an EBIT margin of 22.4%, flat quarter-over-quarter. The softer EBIT margin guidance reflects headwinds from higher tariff costs and increased fixed costs as Vertiv accelerated capital expenditure additions from early 2026 to December 2025.
While EMEA performance was weaker than expected, Vertiv anticipates acceleration in the second half of 2026, supported by the deployment of AI inferencing infrastructure that must be located in-region to meet sovereignty and latency requirements. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, suggesting investors might want to carefully consider entry points. InvestingPro subscribers have access to 18 additional key insights about Vertiv, including detailed valuation metrics and growth projections.
In other recent news, Vertiv Holdings Co reported earnings that exceeded expectations for the third quarter of 2025. The company achieved an adjusted diluted earnings per share of $1.24, surpassing analyst projections of $0.99, resulting in a 25.25% surprise. Revenue also beat expectations, reaching $2.68 billion compared to the forecasted $2.59 billion, marking a 3.47% surprise. These results highlight stronger-than-anticipated performance for the company. The positive earnings report was followed by an increase in investor interest. While analyst upgrades or downgrades were not mentioned in the recent developments, the financial results alone have captured the attention of the market. These developments reflect the current financial health and operational success of Vertiv Holdings.
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