Baird initiates Vertiv stock with Outperform rating on data center growth

Baird initiates Vertiv stock with Outperform rating on data center growth

Oil ticks lower after three-day rally as Iran conflict keeps supply risks elevated Investing.com - Baird initiated coverage on Vertiv Holdings Co. (NYSE:VRT) with an Outperform rating and a price target of $370.00, the firm said Thursday. The stock currently trades at $304.57, down from its 52-week high of $379.94, though shares have surged 143% over the past year. The firm cited Vertiv’s position as a data center pure-play with alignment to NVIDIA as a key factor in the rating.

Baird highlighted the company’s innovation visibility, particularly around 800VDC technology. Vertiv has $24 billion available for capital allocation. The firm noted that expanding the company’s dollars per megawatt and building out services represent attractive uses of capital.

The services business adds a recurring revenue component to Vertiv’s operations. Baird said the company’s operational performance is improving, with cash generation a notable strength. The company posted 29% revenue growth in the last twelve months, reaching $10.8 billion, while maintaining a PEG ratio of 0.57.

The firm recommended investors take advantage of near-term weakness in the stock. Baird characterized Vertiv as a core industrial growth holding. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value.

For deeper insights, investors can access VRT’s comprehensive Pro Research Report, one of 1,400+ available on InvestingPro. In other recent news, Vertiv Holdings Co has announced the opening of a new manufacturing facility in Johor, Malaysia. This facility aims to enhance production capacity for power and cooling infrastructure solutions throughout Asia.

In a strategic move, Vertiv has also completed the acquisition of ThermoKey S.p.A., a company specializing in heat-exchange technologies, which will bolster its thermal management portfolio across Europe, the Middle East, and Africa. Additionally, the company declared a quarterly dividend of $0.0625 per share, payable on June 25, 2026, to shareholders of record as of June 15, 2026. In terms of stock analysis, Bernstein SocGen Group has initiated coverage on Vertiv with an outperform rating, citing its significant role in the data center power and cooling equipment sector.

This rating reflects positive expectations for the company’s future performance in the market. Meanwhile, Vertiv recently held its annual shareholder meeting, where stockholders representing 86.05% of the company’s outstanding Class A common shares participated. These developments highlight Vertiv’s ongoing efforts to expand its market presence and enhance shareholder value.