Morgan Stanley boosted its price target for Vertiv Holdings (VRT) stock to $165 from $125 and reiterated a Buy rating, noting re-accelerating orders and easy margin comparisons into Fiscal 2026 for the artificial intelligence (AI) infrastructure company. Vertiv recently reported solid second-quarter results, with revenue growing by 35% year-over-year to $2.64 billion, and raised the full-year outlook. The company ended Q2 with a robust order backlog of $8.5 billion.
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Vertiv Holdings offers power, cooling, and IT infrastructure solutions, which are seeing huge demand due to rapid growth in data centers.
Morgan Stanley Reaffirms Bullish Stance on VRT Stock
Morgan Stanley analyst Christopher Snyder stated that he initiated a Buy rating on VRT stock earlier this year due to sizeable earnings per share (EPS) upside. The 4-star analyst stated that he is now “more convicted in this view,” based on re-accelerating orders and easy margin comparisons heading into Fiscal 2026.
Additionally, Snyder highlighted that Vertiv delivered “phenomenal” results in the first half of 2025, with organic growth accelerating to 30% and the company adding another $1.3 billion of backlog on top of this growth. Snyder stated that looking beyond Fiscal 2026, the $3 billion quarterly run-rate in the first half of 2026 is tracking in line with 2027 sales forecasts, suggesting that Vertiv can deliver on these numbers without any further order growth or “burning” any of its $8.5 billion backlog.
Snyder noted that VRT’s margins are flat-lining in 2025 due to a combination of inefficiencies to support urgent customer demand, new capacity expansion, and price/cost lag on contracted data center business. That said, the analyst believes that these headwinds are temporary and margins will rebound to expansion mode over the next 12 months, providing the potential for outsized operating leverage.
The analyst is cautious on VRT stock’s valuation, with his revised price target being based on 29x his blended 2026/27 EPS estimate of $5.66 and representing a low-teens percentage premium to peers, as he believes that data center build cycle concerns could limit valuation. Nevertheless, Snyder believes that Vertiv stock deserves a premium multiple, backed by sector-leading organic growth, persistent order strength, and robust backlog.
Is Vertiv a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on Vertiv Holdings stock based on 16 Buys and one Hold recommendation. The average VRT stock price target of $156.73 indicates 12% upside potential from current levels.
