Vertiv Holdings (VRT) stock has rallied 49% year-to-date, driven by the demand for the company’s artificial intelligence (AI) infrastructure offerings to support the ongoing growth in data centers. While VRT stock has pulled back 9% over the past month due to concerns about the valuations of AI stocks, most Wall Street analysts remain bullish on this AI play and see continued upside, thanks to strong demand for the company’s products.
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Vertiv offers power, cooling, and IT infrastructure solutions and services to data centers, communication networks, and commercial and industrial facilities. The company recently reported upbeat Q3 results and a robust backlog of $9.5 billion, and raised its full-year guidance, driven by continued momentum in the data center infrastructure market. Vertiv upgraded its guidance despite tariff-related pressures and weakness in its Europe, the Middle East, and Africa (EMEA) business.
Also, Vertiv continues to strengthen its business to capture AI-related growth prospects. Earlier this month, VRT announced the acquisition of Purge Rite, a specialized fluid management services provider. The deal will enhance VRT’s liquid cooling services portfolio.
Analysts Are Bullish on VRT Stock
Following the Q3 print, TD Cowen analyst Michael Elias increased his price target for Vertiv Holdings stock to $210 from $162 and reiterated a Buy rating, saying that it remains a Top Pick. The 4-star analyst noted that the company reported strong Q3 results and orders, offered mixed Q4 guidance, and raised its 2025 outlook. He added that management’s commentary on accelerating data center demand looks favorable. Elias sees any pullback in VRT stock as a buying opportunity, given that he prefers investing in “picks and shovels” companies amid the solid demand backdrop.
Likewise, Oppenheimer analyst Noah Kaye increased his price target for VRT stock to $195 from $190 and reaffirmed a Buy rating. Kaye noted the company’s record Q3 orders and “robust” earnings per share (EPS) beat. The 5-star analyst expects VRT’s backlog to exit 2025 with a growth of over 35%, creating “clear upside” to Wall Street’s 2026 growth estimates.
Kaye contends that VRT’s orders have yet to include the recent large AI infrastructure announcements, EMEA recovery, and material benefits from the transition to Nvidia’s (NVDA) Rubin chips. The analyst also believes that “return to 30-35% incrementals at higher top-line CAGR rates vs. Investor Day 2024 targets could pull forward timetables for achieving long-term margin targets.” Based on all these positives, Kaye upgraded his 2025 to 2027 estimates for Vertiv.
Is VRT a Good Stock to Buy Now?
Overall, Wall Street has a Strong Buy consensus rating on Vertiv Holdings stock based on 15 Buys and two Holds. The average VRT stock price target of $199.75 indicates 18.3% upside potential.
