Vertiv Holdings (VRT) stock rose about 2.5% on Thursday and was up about 3% in Friday’s pre-market trading as the data center infrastructure provider’s updates at its Investor Conference (May 19-20) boosted analysts’ confidence about the company’s growth potential. Several top analysts raised their price targets for VRT stock to reflect strong demand for the company’s power and cooling solutions and other data infrastructure.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Let’s discuss the opinions of top analysts on Vertiv.
Top Analysts Are Bullish on Vertiv’s Strong Growth Potential
Mizuho analyst Brett Linzey raised his price target for Vertiv stock to $380 from $340 while maintaining a Buy rating, citing “incremental confidence” following the Investor Day event. The analyst called the event “convincing,” and noted several updates to the company’s long-term financial framework. Among the key updates, Linzey noted that VRT now expects an organic revenue CAGR (compound annual growth rate) of 20%-22% from 2025-2030, up from prior guidance of about 12%-14%.
The analyst also noted the increase in Vertiv’s operating margin and data center compute revenue opportunity targets. Importantly, VRT now sees total served market at about $62 billion, up from the prior estimate of about $52 billion, with a CAGR of about 16% to 18%. Linzey added that the event reflected that Vertiv is a fully integrated AI infrastructure systems company, rather than a product/equipment vendor.
Likewise, TD Cowen analyst Michael Elias increased the price target for VRT stock to $387 from $347 and reiterated a Buy rating. The analyst highlighted the company’s long-term targets through 2030, including a cash conversion target of 95% to 100%, a higher annual capital intensity outlook of 3% to 4%, and a total addressable market opportunity of $75 billion.
Interestingly, Elias believes that VRT’s raised guidance seems conservative, given the data center leasing activity observed over the past 12 months. Consequently, the analyst sees upside to the revenue and adjusted operating margin outlook, as his channel checks continue to indicate favorable price-cost trends.
Also, Roth Capital analyst Justin Clare raised his VRT stock price target to $355 from $335 and reaffirmed a Buy rating. Clare said he is incrementally positive after the Investor Day, given the significant increase in management’s five-year framework, including a solid organic revenue CAGR target of 20% to 22%.
Is VRT a Good Stock to Buy Now?
Overall, Wall Street has a Strong Buy consensus rating on Vertiv Holdings stock based on 16 Buys and three Holds. The average VRT stock price target of $372.44 indicates 15.2% upside potential.
