Key insights
- RBC Capital raised its price target on Vertiv (VRT) to $435, citing strong datacenter growth and Vertiv's investments in new platforms. They project substantial revenue and EPS growth through 2030. The analyst highlights a significant datacenter construction backlog, indicating sustained demand. This positive outlook on a key datacenter infrastructure provider suggests continued investment and growth in the AI and cloud computing sectors, which is moderately bullish for the broader US equity market.
Investing.com - RBC Capital raised its price target on Vertiv Holdings Co. (NYSE:VRT) to $435 from $356 while maintaining an Outperform rating on the stock. The stock has delivered a remarkable 257% return over the past year, currently trading at $376.23, near its 52-week high of $379.94, according to InvestingPro data.
The firm expects Vertiv’s upcoming investor meeting on May 19-20 in Greenville, South Carolina to showcase datacenter power and cooling technology. RBC Capital said investments in new platforms including SmartRun, OneCore, and 800V, along with manufacturing capacity, should keep Vertiv in hyper-growth mode.
RBC Capital estimates Vertiv can grow revenue organically by 20% to 25% through 2030 with 25% to 30% incrementals, net of capacity and growth investments. The firm projects this will deliver EPS compound annual growth rate in the mid-to-high 20s range, excluding mergers and acquisitions and buybacks. The company’s revenue already surged 29% in the last twelve months to $10.8 billion, with analysts forecasting 35% growth for fiscal 2026.
The firm noted an estimated 12 years of implied U.S. datacenter construction backlog, with demand continuing to outstrip supply across the datacenter ecosystem. RBC Capital analyst Deane Dray commented: "Still in Hyper-Growth; Boosting Price Target; We expect Outperform-rated Vertiv’s upcoming May 19-20 Greenville, SC investor meeting to be a datacenter power/cooling technology showcase (think mini-SuperCompute)."
RBC Capital raised its price target by $79, citing further earnings and re-rating upside potential for the company.
In other recent news, Vertiv Holdings Co. reported strong first-quarter results, leading to an increase in its full-year earnings per share guidance to $6.35 at the midpoint. This revision includes a 2% increase in organic sales and an 80 basis point improvement in adjusted operating margin. Following these results, BNP Paribas Exane raised its price target for Vertiv to $370, maintaining an Outperform rating. Similarly, UBS reiterated a Buy rating with the same price target, reflecting confidence in the company’s performance. Vertiv also announced the acquisition of Strategic Thermal Labs LLC, enhancing its capabilities in advanced liquid-cooling technologies. This move is expected to bolster Vertiv’s operations in high-density computing environments. Evercore ISI reiterated an Outperform rating on Vertiv, underscoring the strategic value of this acquisition. Additionally, Vertiv appointed Frieda He as the new Chief Procurement Officer, who will focus on supply chain resilience and cost optimization. These developments highlight Vertiv’s ongoing efforts to strengthen its market position.
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