William Blair initiates coverage on Vertiv stock with Outperform rating

Published 28/07/2025, 12:44
William Blair initiates coverage on Vertiv stock with Outperform rating

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.