Is there More Upside in Vertiv Stock (VRT) After a Stellar Rally?
Vertiv Holdings (VRT) stock has rallied by more than 40% over the past year, as the data center infrastructure company is experiencing solid demand for its products amid the ongoing AI (artificial intelligence) boom. While most analysts are bullish on VRT stock due to AI tailwinds, Wall Street's average price target indicates a possible downside from current levels.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Favorable Demand Backdrop for AI Infrastructure Companies
Vertiv provides energy-efficient cooling and power solutions that are required to support AI workloads. Interestingly, on Friday, VRT stock rose by 2% after Reuters reported that the Trump administration is preparing a series of executive actions to increase energy supply for AI development in the U.S.
Spending on data centers is expected to increase in the coming years, benefiting AI infrastructure companies such as Vertiv Holdings. Bank of America estimates total data center spending to grow at a compound annual growth rate (CAGR) of 13% from 2024 to 2028, reaching $532 billion by 2028. In fact, infrastructure-related spending is expected to rise even faster, at a CAGR of 16%.
Here's What Bulls and Bears Think About VRT Stock
According to TipRanks' Bulls Say, Bears Say Tool, VRT Bulls are optimistic about the company due to robust demand and better visibility, which are driving higher estimates. Many analysts also believe in Vertiv's ability to address customers' requirements amid the growing complexity in AI deployments, with solid market shares in data center thermal and electrical equipment.
Meanwhile, Bears are concerned about a slowdown in capital spending by hyperscalers or cloud service providers, volatility in orders, and the impact of tariffs on costs.
Is VRT a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on Vertiv Holdings stock based on 12 Buys and two Hold recommendations. The average VRT stock price target of $116.93 indicates a 7.2% downside risk from current levels.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
13 minutes ago
Senators prep for a weekend of work to meet Trump's deadline for passing his tax and spending cuts
WASHINGTON -- The Senate is expected to grind through a rare weekend session as Republicans race to pass President Donald Trump's package of tax breaks and spending cuts by his July Fourth deadline. Republicans are using their majorities in Congress to push aside Democratic opposition, but they have run into a series of political and policy setbacks. Not all GOP lawmakers are on board with proposals to reduce spending on Medicaid, food stamps and other programs as a way to help cover the cost of extending some $3.8 trillion in Trump tax breaks. The 940-page bill was released shortly before midnight Friday. Senators were expected to take a procedural vote Saturday to begin debate on the legislation, but the timing was uncertain and there is a long path ahead, with at least 10 hours of debate time and an all-night voting session on countless amendments. Senate passage could be days away, and the bill would need to return to the House for a final round of votes before it could reach the White House. 'It's evolving,' said Senate Majority Leader John Thune, R-S.D., as he prepared to close up the chamber late Friday. The weekend session could be a make-or-break moment for Trump's party, which has invested much of its political capital on his signature domestic policy plan. Trump is pushing Congress to wrap it up, even as he sometimes gives mixed signals, allowing for more time. At recent events at the White House, including Friday, Trump has admonished the 'grandstanders' among GOP holdouts to fall in line. 'We can get it done,' Trump said in a social media post. 'It will be a wonderful Celebration for our Country.' The legislation is an ambitious but complicated series of GOP priorities. At its core, it would make permanent many of the tax breaks from Trump's first term that would otherwise expire by year's end if Congress fails to act, resulting in a potential tax increase on Americans. The bill would add new breaks, including no taxes on tips, and commit $350 billion to national security, including for Trump's mass deportation agenda. But the spending cuts that Republicans are relying on to offset the lost tax revenues are causing dissent within the GOP ranks. Some lawmakers say the cuts go too far, particularly for people receiving health care through Medicaid. Meanwhile, conservatives, worried about the nation's debt, are pushing for steeper cuts. Sen. Thom Tillis, R-N.C., said he is concerned about the fundamentals of the package and will not support the procedural motion to begin debate. 'I'm voting no on the motion to proceed,' he said. Sen. Ron Johnson, R-Wis., pushing for deeper cuts, said he needed to see the final legislative text. The release of that draft had been delayed as the Senate parliamentarian reviewed the bill to ensure it complied with the chamber's strict 'Byrd Rule,' named for the late Sen. Robert C. Byrd, It largely bars policy matters from inclusion in budget bills unless a provision can get 60 votes to overcome objections. That would be a tall order in a Senate with a 53-47 GOP edge and Democrats unified against Trump's bill. Republicans suffered a series of setbacks after several proposals were determined to be out of compliance by the chief arbiter of the Senate's rules. One plan would have shifted some food stamp costs from the federal government to the states; a second would have gutted the funding structure of the Consumer Financial Protection Bureau. But over the past days, Republicans have quickly revised those proposals and reinstated them. The final text includes a proposal for cuts to a Medicaid provider tax that had run into parliamentary objections and opposition from several senators worried about the fate of rural hospitals. The new version extends the start date for those cuts and establishes a $25 billion fund to aid rural hospitals and providers. Most states impose the provider tax as a way to boost federal Medicaid reimbursements. Some Republicans argue that is a scam and should be abolished. The nonpartisan Congressional Budget Office has said that under the House-passed version of the bill, some 10.9 million more people would go without health care and at least 3 million fewer would qualify for food aid. The CBO has not yet publicly assessed the Senate draft, which proposes steeper reductions. Top income-earners would see about a $12,000 tax cut under the House bill, while the poorest Americans would face a $1,600 tax increase, the CBO said. One unresolved issue remains the so-called SALT provision, a deduction for state and local taxes that has been a top priority of lawmakers from New York and other high-tax states. The cap is now $10,000. The White House and House Republicans had narrowed in on a plan for a $40,000 cap, but for five years instead of 10. Republican senators says that's too generous. At least one House GOP holdout, Rep. Nick LaLota of New York, said he cannot support the compromise. Senate Democratic leader Chuck Schumer of New York said Republicans are rushing to finish the bill before the public fully knows what's in it. 'There's no good reason for Republicans to chase a silly deadline,' Schumer said. House Speaker Mike Johnson, who sent his colleagues home for the weekend with plans to be on call to return to Washington, said they are 'very close' to finishing up. 'We would still like to meet that July Fourth, self-imposed deadline,' said Johnson, R-La. With the narrow Republicans majorities in the House and Senate, leaders need almost every lawmaker on board to ensure passage. Johnson and Thune have stayed close to the White House, relying on Trump to pressure holdout lawmakers.
Business Insider
13 minutes ago
- Business Insider
Morgan Stanley Remains a Buy on Sika AG (SIKA)
Morgan Stanley analyst Cedar Ekblom maintained a Buy rating on Sika AG (SIKA – Research Report) yesterday and set a price target of CHF257.00. The company's shares closed yesterday at CHF219.90. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Ekblom covers the Industrials sector, focusing on stocks such as Sika AG, A.P. Moeller Maersk A/S, and Buzzi SpA. According to TipRanks, Ekblom has an average return of 5.3% and a 56.60% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Sika AG with a CHF246.78 average price target, which is a 12.22% upside from current levels. In a report released on June 18, Goldman Sachs also initiated coverage with a Buy rating on the stock with a CHF280.00 price target.
Business Insider
13 minutes ago
- Business Insider
Svenska Cellulosa SCA AB (0MCK) Gets a Hold from Jefferies
In a report released yesterday, Cole Hathorn from Jefferies maintained a Hold rating on Svenska Cellulosa SCA AB (0MCK – Research Report), with a price target of SEK142.00. The company's shares closed yesterday at SEK123.42. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Hathorn is a 3-star analyst with an average return of 5.6% and a 49.35% success rate. Hathorn covers the Basic Materials sector, focusing on stocks such as ArcelorMittal, UPM Kymmene, and Stora Enso Oyj. Svenska Cellulosa SCA AB has an analyst consensus of Hold, with a price target consensus of SEK143.83. The company has a one-year high of SEK157.75 and a one-year low of SEK118.35. Currently, Svenska Cellulosa SCA AB has an average volume of 618.5K.
