Vertiv Holdings (VRT) stock has risen about 14% year-to-date and 64% over the past year, driven by the demand for the products of the data center infrastructure company. However, GLJ Research initiated coverage of VRT stock with a Sell rating and a price target of $112, stating that at current levels, continued share-gains at increasingly higher incremental margins are completely priced into the stock without taking into account any possible “capital friction or competitive escalation from larger peers.”
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Meanwhile, Rothschild & Co. Redburn initiated coverage of Vertiv stock with a Hold rating and a price target of $135. The firm contends that while VRT is well-positioned to capitalize on rising AI-driven capital investments, its risk/reward is balanced at current valuation levels.
GLJ Research Assigns VRT Stock a Sell Rating
GLJ Research analyst Austin Wang noted that VRT stock has witnessed a solid rally in recent years, thanks to strong demand for AI infrastructure. However, Wang thinks that VRT stock already reflects “peak cycle economics” for 2027-2028. That said, it doesn’t take into account important questions about growing competition, supply constraints, and pricing power, making the risk/reward look unfavorable.
Wang noted that conversations with data center vendors and architects indicate that Liebert, Geist, and other Vertiv brands continue to execute, driving higher backlog. “However, neither Vertiv’s backlogs nor our checks can be quantified concretely towards the outperformance of ’27 / ’28 Street numbers as required by the stock’s current levels,” contended the analyst. Consequently, he believes that the stock’s current valuation levels completely price in continued share gains at higher incremental margins without considering any potential capital friction or increase in competition from larger players.
Overall, Wang’s $112 price target at a valuation multiple of 16.1x 2026 EBITDA estimate reflects increased out-year competition offsetting the data center pure-play premium.
Is VRT a Good Stock to Buy?
Prior to the ratings mentioned above, Vertiv Holdings stock scored a Strong Buy consensus rating based on 15 Buys and one Hold recommendation. The average VRT stock price target of $156.50 indicates 21.3% upside potential.
