Updated Aug 7 at 11:26am ET.
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GLJ Research set a price target of $381 for the stock, which is about 36 percent higher than where it trades today. This is also higher than the average target of $359 across all Wall Street analysts who follow the company.
Setting a price target is an analyst's way of saying what they think the stock will be worth in about a year. This optimistic view suggests that the firm expects the company to continue benefiting from the high demand for the power and cooling systems it builds for data centers.
Source: GLJ Research
Bitzero, a firm focused on sustainable data centers, is collaborating with Vertiv to build out its infrastructure for artificial intelligence. Vertiv will provide the technical expertise and supply chain support needed for these high-density computing sites. This partnership is another example of Vertiv becoming the go-to provider for the physical parts of the AI buildout. As more specialized firms like Bitzero try to scale up, they are relying on Vertiv's established manufacturing and cooling technology to get their data centers running.
Bernstein set a price target of $368, suggesting the stock could rise more than 30 percent. This call comes just days after the company reported its latest quarterly results.
While the stock fell immediately after earnings, this target shows that some analysts believe the underlying business remains strong. It reflects confidence that the company can continue to profit from the massive spending on data center infrastructure.
Source: Bernstein
RBC Capital lowered its price target to $337 following the company's latest financial report. Despite the lower target, the firm kept its positive rating, which is a signal they still believe in the company's long-term direction.
This adjustment likely reflects a more cautious view on how quickly the company can turn its massive backlog of orders into actual revenue. Even with the lower target, the firm still sees the stock as worth more than its current price.
Source: RBC Capital
Vertiv reported a strong second quarter with adjusted earnings of $1.52 per share, beating the $1.43 analysts expected. Revenue grew 24 percent to $3.27 billion, and the company raised its full-year sales forecast to $14 billion. This growth is being fueled by the massive buildout of data centers for artificial intelligence.
Profit margins reached 22.6 percent, a significant jump from last year. This shows the company is successfully shifting toward higher-value products like liquid cooling, which is necessary to keep AI chips from overheating. While the stock fell because sales were slightly below some estimates, the raised guidance suggests management is confident that demand for their power and cooling systems is only getting stronger.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Analysts recently lowered their price targets for Vertiv following its latest earnings report. Nearly all 20 analysts recommend buying the stock, and the average target of $359 suggests a 29% increase from the current price.
The company has beaten profit expectations for eight straight quarters. Management consistently sets a bar they can clear, and the business is currently outrunning even bullish forecasts.
| Expectation | |
|---|---|
| EPS | $1.81 |
| Revenue | $3.75B |
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