As Vertiv (VRT), the Ohio-based provider of power, cooling, and IT infrastructure, prepares to release its third quarter results on Wednesday, Wall Street has showered its stock with price target boosts.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Over the last few days, VRT stock’s price targets have been raised by analysts from Mizuho, RBC Capital (RY), JPMorgan (JPM), Deutsche Bank (DB), and Oppenheimer (OPY), among others.
But why is Vertiv attracting these boosts, and what does Wall Street expect in terms of the company’s third quarter performance?
Vertiv Enjoys Exposure to AI Infrastructure Boom
According to RBC Capital analyst Deane Dray — who raised his price target by approximately 18% to $191 per share and maintained his Outperform rating on VRT stock — the industrials sector is poised to benefit from several long-term growth drivers. These include Trump’s campaign to bring tech manufacturing back to the U.S. and the surge in demand for AI-powered data centers.
Dray also sees companies in the sector benefiting from a possible lower interest rate regime from the U.S. Federal Reserve. He expects such environment to continue to fuel steady growth and make it easier for companies to stabilize their future earnings.
Similarly, Deutsche Bank analyst Nicole Deblase, who stuck to her Buy rating and raised her price target by 16% to $216 per share, up from $186, argued that Vertiv has “moved considerably higher” in its share of the AI data center market. In the same vein, Oppenheimer analyst Noah Kaye emphasized that stocks exposed to investments in AI infrastructure have delivered stronger performances compared to other sectors.
Analysts See Revenue, EPS Growth in Q3
In contrast, while JPMorgan analyst Stephen Tusa raised his price target even higher — by 37% from $150 to $206 — the firm is a “bit more cautious” about its short-term outlook on the electrical equipment industry. Nonetheless, Tusa believes that the valuations of companies in the sector are “at least more attractive.”
Heading into Q3, Wall Street expects Vertiv to report earnings per share of 98 cents compared to 76 cents in the same period last year. Analysts also anticipate revenue to jump by about 25% to $2.58 billion, up from $2.07 billion raked in during the same period last year.
Is Vertiv Stock a Good Buy?
Across the larger Wall Street, Vertiv’s shares currently enjoy a Strong Buy consensus rating. This is based on 16 Buys, two Holds, and One Sell recommendation issued by 19 Wall Street analysts over the past three months.
Moreover, at $173 per share, the average VRT price target indicates a downside risk of about 2% from the current level.
