Vertiv Holdings Co. (VRT) PT Raised to $105 at Evercore ISI

Evercore ISI analyst Amit Daryanani raised the price target on Vertiv Holdings Co. (NYSE: VRT) to $105.00 (from $95.00) while maintaining a Outperform rating.

The analyst comments "We think investors aren’t focused enough on how VRT is providing an end-to-end solution vs. ‘new’ entrants that are more around point solutions. Server OEMs touting their liquid cooling offerings have been primarily around CDUs and other point solutions, rather than the end-to-end portfolio VRT can offer, including not just liquid cooling, but also air cooling, heat rejection/reuse units, evaporative units, and host of power management solutions across the data infrastructure. In addition, services are becoming an increasing key differentiator, with VRT offering services not just around lifecycle services, but also having the capability to deploy engineers at customer campuses in maintenance/emergency situations in hours vs. days. Beyond the top line opportunity, management noted multiple levers to drive adj. operating margins beyond the ~20%+ target it laid out during its analyst day last fall, including opex leverage, being in a price-cost positive environment, as well as productivity gains, particularly in procurement and manufacturing. In addition, embedded in management’s margin target are expectations that the mix of services remains neutral, though the higher attach rate of services to AI deployments could provide a meaningful incremental tailwind to margin expansion. Net/net: Sticking with OP rating but moving our target to $105 (from $95). Our bull case remains at $150 predicated on $6.50+ EPS power over the next 2-3 years."

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