Vertiv Holdings: Melius Research upgrades Buy from Hold, PT raised to $165 from $134.

Vertiv Holdings: Melius Research upgrades Buy from Hold, PT raised to $165 from $134.

Melius Research has upgraded Vertiv Holdings Co. (NYSE: VRT) from a Hold rating to a Buy rating, raising its price target to $165. The upgrade reflects the research firm's optimism about the company's position in the AI ecosystem and its potential for growth in the AI data center sector. Vertiv's stock has seen an impressive 11.22% return year-to-date, according to InvestingPro data.

Melius cited diminished capital expenditure risks and accelerating AI spending as key factors behind the decision. The research firm highlighted Vertiv's role as a "critical picks/shovels supplier" in the AI ecosystem, noting that supply constraints are likely to persist for an extended period. Melius also expressed confidence that Vertiv will develop a larger than expected aftermarket presence as its installed base grows, experiences high utilization rates, and sees higher replacement cycles.

The upgrade comes despite Vertiv's recent stock price appreciation, with Melius suggesting that the company could transition from a capex story to a capex + annuitized aftermarket story within just 2-3 years. Melius compared Vertiv's valuation context to Nvidia (NASDAQ: NVDA) approaching a $4 trillion market cap and GE Vernova’s recent performance.

In other recent news, Citi raised its price target for Vertiv to $130, maintaining a Buy rating due to the company’s strategic position in the expanding data center market, particularly driven by AI growth. The firm anticipates Vertiv to achieve tariff neutrality by the end of 2025, potentially reducing expected financial headwinds. Evercore ISI increased its price target for Vertiv to $150, keeping an Outperform rating, citing the company’s potential for high revenue growth and margin expansion in the AI data center sector.

Vertiv also introduced a new cooling and power design for NVIDIA’s AI platform, promising improved energy efficiency and faster deployment times. The company announced the appointment of Mike Giresi as the new global CIO, who will lead Vertiv’s digital strategy initiatives. Furthermore, Vertiv’s CFO, David Fallon, plans to retire, with the company actively searching for his successor while maintaining its financial outlook for 2025.

These developments underscore Vertiv’s ongoing focus on innovation and strategic growth in the AI and data center markets. The company's stock has seen an impressive 11.22% return year-to-date, according to InvestingPro data [1]. Vertiv’s stock currently has an average rating of "Moderate Buy" and a consensus price target of $129.19 [2].

References:
[1] https://www.investing.com/news/analyst-ratings/melius-upgrades-vertiv-stock-to-buy-on-ai-spending-acceleration-93CH-4126257
[2] https://www.marketbeat.com/instant-alerts/vertiv-nysevrt-stock-rating-upgraded-by-melius-2025-07-08/