Goldman Sachs analyst Mark Delaney has maintained their bullish stance on VRT stock, giving a Buy rating on February 13.
Mark Delaney has given his Buy rating due to a combination of factors including Vertiv Holdings’ strong performance and promising outlook. Despite a slight revenue shortfall compared to market expectations, the company’s adjusted earnings per share and operating profit surpassed Wall Street’s predictions, indicating solid profitability. The upward revision of the 2024 revenue and EBIT guidance by Vertiv, which now exceeds the consensus estimates, provides a positive signal for future financial health. Furthermore, the introduction of an adjusted EPS guidance that is in line with street expectations reflects management’s confidence in the company’s earnings potential.
Delaney’s optimism is further bolstered by the significant year-over-year growth in orders and a record-high backlog, which suggests sustained growth for Vertiv in 2024 and beyond. The company’s bookings in the second half of 2023 were notably impacted by large, longer-dated projects, a reflection of increasing demand in areas such as artificial intelligence. Additionally, Vertiv has maintained solid pricing strategies, which Delaney believes will not only contribute to strong revenue and margins in 2024 but will also extend into 2025 as these pricing benefits flow into the backlog. Overall, these indicators point to a robust business trajectory for Vertiv Holdings, justifying the Buy rating.
In another report released on February 13, Bank of America Securities also reiterated a Buy rating on the stock with a $72.00 price target.
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Vertiv Holdings (VRT) Company Description:
Vertiv Holdings Co. engages in the design, manufacturing, and servicing of critical digital infrastructure technology that powers, cools, deploys, secures and maintains electronics that process, store and transmit data. It also offers power management products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure. It carries out its operations in the following geographical segments: Americas, Asia Pacific, and EMEA. The company was founded on February 7, 2020 and is headquartered in Columbus, OH.
Read More on VRT:
- VRT Earnings: Vertiv Plummets as Q1 Outlook Falls Short of Estimates
- Vertiv Holdings Bolsters Financial Position with Enhanced Credit Terms
- Starboard takes new stakes in Fortrea, News Corp
- Vertiv Holdings price target raised to $72 from $60 at BofA
- Vertiv Holdings price target raised to $53 from $48 at JPMorgan
