BofA raised the firm’s price target on Vertiv (VRT) to $150 from $140 and keeps a Buy rating on the shares. Shares fell on July 10, on news that Amazon Web Services (AMZN) had designed proprietary cooling systems, but AWS will not manufacture or service this equipment and AWS and other cloud service providers have traditionally used proprietary electrical and thermal equipment that is manufactured to their specifications, notes the analyst, who views this announcement as “no different from prior business practices.” For Q2, the firm forecasts 21% year-over-year organic revenue growth and a 19.1% adjusted operating margin for Vertiv, driving its above-consensus adjusted EPS forecast of 84c, the analyst noted.
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