Analyst Hikes Vertiv (VRT) Price Target as Order Backlog Anchors Long-Term Outlook

Vertiv Holdings Co. (NYSE:VRT) is one of the best data center stocks to buy now. On August 11, Morgan Stanley analyst Christopher Snyder raised his price target on Vertiv Holdings (NYSE:VRT) to $165 from $125 and reiterated a Buy rating, citing stronger order trends and more favorable margin comparisons as the company heads into fiscal 2026.

Vertiv Holdings (NYSE:VRT) had already delivered an impressive second quarter, with full-year guidance lifted. The company closed the quarter with an $8.5 billion order backlog, which Snyder sees as a key support for growth.

Analyst Hikes Vertiv (VRT) Price Target as Order Backlog Anchors Long-Term Outlook

A close up of a computer server rack powering the backbone of a wireless infrastructure.

The analyst highlighted that Vertiv Holdings (NYSE:VRT) added another $1.3 billion to backlog in the first half of 2025 while organic growth accelerated to 30%. With the business already running at close to a $3 billion quarterly revenue pace, Snyder believes Vertiv is on track to meet 2027 sales expectations even without incremental order growth.

One area of caution is margins, which have been flat through 2025. Snyder attributes this to short-term inefficiencies linked to urgent customer demand, ongoing capacity expansion, and some pricing delays in contracted data center projects. However, he expects these headwinds to ease over the next year, giving room for margins to expand again and unlocking higher operating leverage.

Although valuation is above peers, Snyder believes the premium is justified given Vertiv Holdings’ (NYSE:VRT) robust growth, sizable backlog, and leading position in AI-driven data center infrastructure.

Vertiv Holdings Co. (NYSE:VRT) is engaged in the design, manufacturing, and servicing of critical digital infrastructure for data centers, communication networks, and commercial and industrial environments. The company specializes in thermal management, power distribution, and backup power systems, ensuring high efficiency and reliability in mission-critical operations.

While we acknowledge the potential of VRT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VRT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.