Andrew Obin, an analyst from Bank of America Securities, reiterated the Buy rating on Vertiv Holdings (VRT – Research Report). The associated price target remains the same with $135.00.
Andrew Obin has given his Buy rating due to a combination of factors that highlight the potential for Vertiv Holdings’ stock to appreciate. Despite a 36% decline in VRT shares year-to-date compared to a 10% drop in the S&P 500 Index, Obin anticipates that order growth will be a key driver for the stock, with a forecast of $2.4 billion in orders. The data center market fundamentals remain robust, with a record-low vacancy rate of 1.9% in the US, even as rents have increased by 13% year-over-year.
Additionally, the concerns surrounding Microsoft’s data center capital expenditures are seen as temporary, with Microsoft planning significant spending in the coming fiscal year. The capital expenditure by major cloud service providers is expected to rise significantly, which bodes well for Vertiv Holdings. Furthermore, the impact of US tariffs on margins is considered manageable, and there is a potential foreign exchange tailwind. These factors, combined with a price objective of $135.00 USD, support the Buy rating for Vertiv Holdings.
In another report released on April 16, RBC Capital also maintained a Buy rating on the stock with a $108.00 price target.