Wolfe Research analyst Nigel Coe has maintained their neutral stance on VRT stock, giving a Hold rating on May 11.
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Nigel Coe has given his Hold rating due to a combination of factors, balancing strong AI-driven growth prospects against a stretched valuation. He expects Vertiv’s investor event to highlight significantly higher medium-term targets, including faster data center spending, rising content per gigawatt from modular solutions and new cooling technologies, and sustained incremental margins in the low-30% range.
These assumptions support a materially higher long-term revenue growth outlook and earnings potential of roughly $13–15 per share by 2030, broadly in line with current consensus. However, the shares already discount much of this upside, trading around 25 times projected 2030 earnings and at a substantial premium to both AI infrastructure peers and even Nvidia, while macro, regulatory, and funding risks to data center expansion remain, leading him to see a more balanced risk/reward at current levels.
Coe covers the Industrials sector, focusing on stocks such as Madison Air Solutions Corp. Class A, Otis Worldwide, and Honeywell International. According to TipRanks, Coe has an average return of 8.1% and a 54.84% success rate on recommended stocks.
In another report released on May 11, Goldman Sachs also maintained a Hold rating on the stock with a $338.00 price target.