Vertiv Holdings, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Andrew Obin from Bank of America Securities reiterated a Buy rating on the stock and has a $150.00 price target.
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Andrew Obin has given his Buy rating due to a combination of factors that highlight Vertiv Holdings’ strong financial performance and growth potential. The company reported a significant 13% year-over-year growth in orders in the first quarter of 2025, which led to a positive market reaction. For the second quarter, while orders are expected to remain flat year-over-year, the forecasted revenue growth of 21% and an adjusted operating margin of 19.1% are impressive indicators of the company’s operational efficiency.
Furthermore, despite concerns about Amazon Web Services developing proprietary cooling systems, Obin views this as consistent with existing industry practices and not a significant threat to Vertiv’s business. The anticipated increase in capital expenditures by major cloud service providers and the ongoing expansion in data center construction also support a positive outlook for Vertiv. Additionally, the company’s valuation is set at a premium compared to its peers, reflecting its above-average earnings growth, which justifies the raised price objective to $150 and the reiterated Buy rating.
In another report released yesterday, Mizuho Securities also upgraded the stock to a Buy with a $150.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VRT in relation to earlier this year.