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Investing.com - William Blair initiated coverage on Vertiv Holdings Co. (NYSE:VRT) with an Outperform rating on Monday. The $52.39 billion market cap company has earned a "Strong Buy" consensus from analysts, according to InvestingPro data.
The research firm cited Vertiv’s superior fundamentals compared to its peer group, noting that the company’s revenue and earnings growth are double the peer group averages. This is supported by Vertiv’s impressive 20.45% revenue growth and overall "GREAT" financial health score.
William Blair highlighted Vertiv as one of the most concentrated AI infrastructure investment opportunities among public peers, with a synchronized offering of power and thermal management.
At $131, Vertiv shares trade at 30 times William Blair’s 2026 adjusted EPS estimate and 22 times its EBITDA estimate, reflecting a 20%-25% premium to the peer group.
The firm acknowledged several investment risks, including large customer cancelations, data center regulation, intense competition, supply chain headwinds, and power constraints.
In other recent news, Vertiv Holdings Co. has announced its agreement to acquire Great Lakes Data Racks & Cabinets for $200 million. This strategic acquisition is anticipated to enhance Vertiv’s capacity to deliver AI-ready rack solutions across various computing markets. The deal is expected to close in the third quarter of 2025, pending regulatory approvals. Additionally, Wolfe Research has reiterated its Outperform rating on Vertiv stock, maintaining a price target of $155, citing the acquisition’s strategic fit and potential revenue synergies. BofA Securities also adjusted its price target for Vertiv, raising it to $150 from $140, while retaining a Buy rating. The firm highlighted Vertiv’s 13% year-over-year orders growth in the first quarter of 2025 as a factor in its decision. Furthermore, Vertiv has appointed Wei Shen as president of Greater China, effective July 22, 2025. Shen brings extensive experience from his previous roles at Gates Corporation and Eaton (NYSE:ETN) Electrical.
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