Shares of artificial intelligence (AI) provider Vertiv Holdings (VRT) were down 4% at the time of writing on Tuesday after Wolfe Research analyst Nigel Coe downgraded his rating to Hold from Buy on valuation concerns. As of Monday’s closing, VRT stock was up 60.5% year-to-date, reflecting optimism about the strong demand for the company’s products due to the AI boom.
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Vertiv offers power, cooling, and IT infrastructure solutions and services to data centers, communication networks, and commercial and industrial facilities.
Here’s Why Wolfe Analyst Moved to the Sidelines on VRT Stock
Coe stated that Vertiv stock looks balanced following the strong rally. The analyst highlighted that this is the first time he has not recommended VRT since upgrading the stock in December 2022.
The 4-star analyst noted that VRT has been the top-performing stock in the electrical equipment and multi-industry sectors over the past three years. He pointed out that since his upgrade in December 2022, VRT stock has risen about 14 times, with its NTM (next 12 months) P/E multiple re-rating from about 13x to 36x. The company’s earnings per share (EPS) base has quadrupled over this time frame, making it a “remarkable story,” said Coe.
Meanwhile, Goldman Sachs analyst Mark Delaney increased his price target for Vertiv stock to $204 from $182 and reiterated a Buy rating. The 5-star analyst noted that autos and industrial tech stocks performed strongly in 2025, driven by consistent end-market demand and multiple expansion, with autos rising by a median 23% year-to-date and industrial tech up 63%.
What Is the Price Target for VRT Stock?
With 15 Buys and two Holds, Wall Street has a Strong Buy consensus rating on Vertiv Holdings stock. The average VRT stock price target of $201.88 indicates 12.8% upside potential.
