Vertiv Holdings double upgraded to Buy at BofA on AI tailwinds

As previously reported, BofA double upgraded Vertiv Holdings (VRT) to Buy from Underperform with a price target of $40, up from $14, after the company reported Q2 revenue that was 7% above the firm’s forecast and management raised 2023 free cash flow guidance by $200M to a range of $525M-$575M. Relative to competitors like Eaton (ETN) and Schneider, Vertiv has a strong portfolio in thermal management and the adoption of artificial intelligence should drive more graphics processing unit chips into data centers, which should provide a tailwind for Vertiv’s thermal offerings, the analyst tells investors.