Vertiv Holdings Upgraded to Buy by Melius Research, Price Target Raised to $165

Melius Research upgraded Vertiv Holdings (VRT) stock from Hold to Buy and increased the price target from $134 to $165, citing dissipation of capex risks. Analyst Scott Davis expects Vertiv to benefit from a generational capex build cycle, high utilization rates, and a growing aftermarket presence. The company's infrastructure solutions, combined with Nvidia's AI platforms, enable customers to deploy next-generation data centers. Overall, VRT stock has a Strong Buy consensus rating and an average price target of $123.50.

Vertiv Holdings (VRT) has received a significant boost from Melius Research, which upgraded the stock from a 'Hold' rating to a 'Buy' rating. The research firm also raised the price target for VRT from $134.00 to $165.00 USD, representing a substantial increase of 23.13%. This positive revision reflects Melius Research's optimism about the company's future performance and growth prospects [1].

The upgrade comes amid a favorable outlook for Vertiv's position in the AI ecosystem and its potential for growth in the AI data center sector. Analyst Scott Davis highlighted the dissipation of capital expenditure risks and accelerating AI spending as key factors behind the decision. Vertiv's role as a "critical picks/shovels supplier" in the AI ecosystem is expected to drive its growth, with supply constraints likely to persist for an extended period [3].

Davis expects Vertiv to benefit from a generational capex build cycle, high utilization rates, and a growing aftermarket presence. The company's infrastructure solutions, combined with Nvidia's AI platforms, enable customers to deploy next-generation data centers. This strategic positioning is anticipated to transition Vertiv from a capex story to a capex + annuitized aftermarket story within the next 2-3 years [3].

Vertiv's recent earnings results have also been promising. The company reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates by $0.02. This performance reflects a 24.2% year-over-year increase in revenue, demonstrating strong operational momentum [2].

The consensus rating for VRT stock is currently "Strong Buy," with an average price target of $123.50. This positive sentiment is supported by the upgrade from Melius Research and other analysts, including Evercore ISI, JPMorgan Chase & Co., and Roth Mkm, who have also raised their price targets and ratings for the stock [2].

Institutional investors and hedge funds have also shown confidence in Vertiv, with several major players increasing their stakes in the company's stock. Assetmark Inc., Proficio Capital Partners LLC, Bank Julius Baer & Co. Ltd Zurich, PNC Financial Services Group Inc., and Larson Financial Group LLC have all boosted their holdings in Vertiv during the fourth quarter [2].

Overall, the upgrade from Melius Research and the positive consensus ratings indicate that Vertiv Holdings (VRT) is well-positioned to benefit from the growing AI data center market. Investors may want to consider this stock for its potential for growth and strong fundamentals.

References:
[1] https://www.gurufocus.com/news/2964056/vertiv-holdings-vrt-receives-analyst-upgrade-and-raised-price-target-vrt-stock-news
[2] https://www.marketbeat.com/instant-alerts/vertiv-nysevrt-rating-increased-to-buy-at-melius-research-2025-07-08/
[3] https://www.ainvest.com/news/vertiv-holdings-melius-research-upgrades-buy-hold-pt-raised-165-134-2507/