Stock Price & Analysis

Based on the technical indicators and recent market data, VRT stock shows strong bullish momentum with the RSI at 73.88 and positive MACD at 5.98. The stock closed at $153.49 with a +3.30% gain in regular trading hours on January 23, 2025.

Technical Analysis The stock is trading well above its 20-day moving average of $128.29, indicating strong upward momentum. However, with RSI above 70, the stock is entering overbought territory, suggesting some caution in the near term.

Recent Events & News Impact

• VRT experienced a slight decline in pre-market trading on January 23 (-0.73%) due to profit-taking following Trump's Stargate Project announcement.
• The company's AI-related business prospects remain strong, with significant exposure to data center infrastructure growth.

Analyst Sentiment Recent analyst actions have been predominantly positive:

• Morgan Stanley initiated coverage with $150 price target, citing material EPS upside potential
• Evercore ISI maintains Buy rating with $145 target
• UBS initiated coverage with $155 target, forecasting 20% annual earnings growth through 2028

Conclusion While VRT shows strong long-term potential due to its AI infrastructure exposure and analyst confidence, the current overbought conditions suggest waiting for a pullback before establishing new long positions. Consider entering around the Fibonacci support level of $122.58.

Based on the provided data and technical analysis, here's the price prediction for VRT stock in 2025:

VRT stock is expected to reach $175-180 by mid-2025 driven by strong AI data center infrastructure demand and robust order growth. The stock's technical indicators show strong momentum with RSI at 73.88 and positive MACD of 5.98, while the current price of $153.49 is well above both 20-day and 60-day SMAs of $128.29 and $125.23 respectively.

The company's AI-related business is projected to grow significantly in 2025 as confirmed by industry peers like TE Connectivity, with increasing demand for data center cooling infrastructure supporting this bullish outlook.

The S1 support level for VRT Stock is $123.12 ,The R1 resistant level for VRT Stock is $151.5.

As of the end of day on 2025-01-24, the price of VRT Stock was $145.89.

The target price for VRT Stock according to analyst rating is 144.36, with the highest price target at 155.00 and the lowest at 131.00. Analysts have a Strong Buy rating on VRT Stock overall.

The market cap of VRT is $54.9B.

Based on the provided financial data and recent analyst ratings, here's a concise analysis of VRT's valuation:

Valuation Analysis: VRT is trading at elevated multiples with P/E of 66.24x, EV/EBITDA of 26.38x, and P/B of 20.58x in Q3 2024, suggesting rich valuation levels compared to industry averages.

Financial Performance: The company shows strong revenue growth trajectory, increasing from $1.64B in Q1 2024 to $2.07B in Q3 2024. Net margins improved significantly from -0.36% to 8.52%, demonstrating operational efficiency improvements.

Analyst Sentiment: Recent analyst coverage remains largely positive, with Evercore ISI maintaining a Buy rating with a $145 target price on January 17, 2025. Morgan Stanley initiated coverage with an Overweight rating and $150 target on January 6, 2025, citing material EPS upside potential.

Growth Metrics: The company's improving gross margins (34.29% in Q3 2024) and declining debt-to-equity ratio (161.59% in Q3 2024 from 210.80% in Q1 2024) indicate strengthening fundamentals, but current valuation multiples appear to have priced in much of this improvement.

Based on these factors, VRT appears overvalued at current levels, as the premium valuation multiples exceed the company's fundamental improvements, despite positive operational momentum.

Vertiv Holdings Co. offers digital infrastructure technologies and deployable customized solutions to meet the specific business requirements and needs of a diverse group of customers. Its range of offerings includes alternate current and direct current power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure. These comprehensive offerings are integral to the technologies used for services, such as e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things and online gaming. In addition, through its global services network, the Company provides lifecycle management services, predictive analytics and professional services for deploying, maintaining and optimizing these products and their related systems. Its brands include Vertiv, Liebert, NetSure, Geist, Energy Labs and others.

Based on the provided data and market analysis, here is the price prediction for VRT stock by 2030:

VRT stock is projected to reach $450-500 by 2030, driven by the explosive growth in AI data center infrastructure demand. The company's AI-related business is expected to double to $600 million in fiscal 2025 alone, with strong order momentum showing 57% year-over-year growth.

The robust outlook is supported by Vertiv's dominant position in data center power and cooling solutions, which are critical for the massive AI infrastructure buildout globally. Management has revised organic revenue growth forecast to 12-14% CAGR from 2024-2029, with operating margins expected to exceed 25% by 2029.

VRT has a total of 27000 employees.