Steve Weiss, founder and managing partner at Short Hills Capital Partners ,joins CNBC's “Halftime Report” to explain why he's buying more Vertiv.
The need for data center services has been on the rise as demand for artificial intelligence (AI) products soars. One of the biggest costs associated with data center infrastructure is related to energy consumption.
In the most recent trading session, Vertiv Holdings Co. (VRT) closed at $86.99, indicating a +1.43% shift from the previous trading day.
Zacks.com users have recently been watching Vertiv (VRT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
In the latest trading session, Vertiv Holdings Co. (VRT) closed at $75.47, marking a +1.33% move from the previous day.
Vertiv's dividend payout is sustainable, given strong prospects driven by solid AI-driven order growth and expanding market share in the thermal management space.
Vertiv Holdings Co. (VRT) closed at $75.06 in the latest trading session, marking a -0.19% move from the prior day.
Vertiv, a former Emerson subsidiary, successfully transitioned from a turnaround to a growth story driven by high demand for data center infrastructure and AI applications. Operating leverage on pricing power and cost dilution may drive EBITDA margins to 23% by 2026 vs. 17% in 2023. Cash earnings may grow at over 30% a year with an FCF of US$1.3bn by 2026.
Recently, Zacks.com users have been paying close attention to Vertiv (VRT). This makes it worthwhile to examine what the stock has in store.
My initial bullish thesis didn't hold up well, but my updated analysis suggests that the pullback over the last three months isn't related to the company's fundamentals. The company is efficiently absorbing AI tailwinds, as its operating profit and free cash flow demonstrate strong growth. The valuation seems compelling, and leading Wall Street analysts are also quite bullish about Vertiv's stock.
The average of price targets set by Wall Street analysts indicates a potential upside of 33.2% in Vertiv (VRT). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Vertiv's (VRT) prospects benefit from strong AI-driven order growth and expanding market share in the thermal management space.