Valuation Concerns Shadow Vertiv’s (VRT) AI Infrastructure Upside, Say Analysts

Vertiv Holdings Co (NYSE:VRT) is one of the best stocks for a 20-year long-term stock portfolio. On August 20, an analyst from Rothschild & Co Redburn initiated coverage of Vertiv Holdings Co (NYSE:VRT) with a Neutral rating and a $135 price target.

The analyst highlighted that Vertiv’s strong presence in thermal and power management would benefit it as AI workloads increase because these areas are essential for data centers. However, the note also cautioned that much of this strength may already be priced into the stock, which leaves limited room for near-term upside.

Around the same time, analysts at GLJ Research initiated coverage with a Sell rating and a $112 target, implying a 17% downside. The analysts contend that Vertiv Holdings Co’s (NYSE:VRT) valuation factors in “peak cycle” conditions for 2027-2028, leaving little margin for error. The analyst also raised concerns around competition and the durability of pricing power, which were flagged as key risks to sustaining the current momentum.

The cautious view from both analysts is understandable as the stock is currently trading near the top of its 52-week range and its all-time high. However, analyst consensus still appears optimistic on Vertiv Holdings Co (NYSE:VRT) with a price target of $162, implying a 20% further upside.

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.

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