Vertiv Holdings (VRT) Boosts EPS Outlook After Q3 Beat, RBC Maintains Price Target

Vertiv Holdings Co. (NYSE:VRT) ranks among the stocks with the best earnings growth for the next 5 years. On October 22, RBC Capital reaffirmed its $191 price target and Outperform rating on Vertiv Holdings Co. (NYSE:VRT) shares, pointing to the company’s third-quarter earnings that surpassed analyst projections and its positive impacts for other data center thermal and electrical companies.

The company reported an impressive 28.4% organic revenue growth, with the Americas segment bringing in a notable 43% organic increase. Orders increased by nearly 60% year-over-year in the quarter, with a book-to-bill ratio of 1.4x, while inventory hit $9.5 billion, up about 30% from a year earlier.

Following its performance, Vertiv Holdings Co. (NYSE:VRT) boosted its full-year EPS expectations by about 8% at the midpoint, putting it 7% above market estimates. In addition, the company raised its organic sales estimates to 26%-28%, above the average projection of 25.4%.

Vertiv Holdings Co. (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies & life cycle services for data centers, communication networks, and commercial & industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.

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.