Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
This Month's Exclusive News
Vertiv Keeps Chugging, Price Targets Flip to the UpsideAuthor: Leo Miller. Publication Date: 4/24/2026. 
Key Points
- Vertiv has been one of the market's best-performing AI stocks, and just delivered another impressive set of results.
- The company's beat-and-raise report comes as earnings soared by more than 80% in the quarter.
- Updated targets pointed to upside ahead, a shift from stale targets that indicated downside.
- Special Report: Elon Musk’s $1 Quadrillion AI IPO
Over the past several years, data center power and thermal management stock Vertiv (NYSE: VRT) has become one of the market’s hottest names. Since the start of 2024, Vertiv shares have climbed more than 500%, and the rally has continued into 2026 — the stock is already up over 100% year to date. Vertiv did dip more than 2% following its latest earnings release, but the stock rebounded the next day, rising more than 5%.
Despite already-large gains, Vertiv’s strong financial results and the ongoing data center buildout underpin a compelling outlook. Vertiv Crushes EPS Estimates, Boosts Guidance SubstantiallyIn its latest quarter, Vertiv reported revenue of $2.65 billion, up just over 30% year over year and slightly above estimates of $2.63 billion. Adjusted earnings per share of $1.17 — an 83% increase year over year — comfortably beat the $1.00 consensus. Adjusted free cash flow surged 147% to $652.8 million. Management also raised full-year guidance materially. The company now expects midpoint sales of $13.75 billion and midpoint adjusted EPS of $6.35, representing increases of $250 million and $0.33, respectively, versus its prior outlook. Vertiv’s strongest performance came in the Americas, where sales grew 53% and the region accounted for 68% of total revenue. Management highlighted diversified growth across product lines in the region. Asia Pacific lagged, with 15% growth coming in below guidance, but management said the shortfall was largely a timing issue and that the revenue should flow into future quarters. Vertiv’s net debt (debt minus cash) fell roughly 50% in the quarter to under $700 million, and net leverage dropped to 0.2x. In other words, adjusted EBITDA was roughly five times net debt — a sign of a very healthy balance sheet. Competition From Customers? Hyperscaler Risks and RewardsOne notable risk for Vertiv is that some of its biggest customers — hyperscalers — could elect to build certain technologies internally. In mid-2025, Amazon.com (NASDAQ: AMZN) announced it had developed a custom liquid-cooling system, the “In Row Heat Exchanger” (IRHX), designed to cool NVIDIA’s (NASDAQ: NVDA) Blackwell racks. The news knocked Vertiv shares down about 6% in a day, underscoring the risk that large customers can become competitors. Bloomberg Intelligence analyst Mustafa Okur warned that “Amazon Web Services rolling out its own server liquid-cooling system could weigh on Vertiv’s future growth prospects.” Okur estimates liquid cooling represents roughly 10% of Vertiv’s revenue and notes Amazon may be one of Vertiv’s largest customers. Being a hyperscaler supplier can be a double-edged sword. On the plus side, winning hyperscaler business can generate massive demand — these companies each spend $100 billion to $200 billion annually on capital expenditures. On the downside, well-capitalized hyperscalers have the engineering resources to internalize technologies after using them, which can quickly eliminate a significant source of external demand. Amazon’s move into liquid cooling raises a valid question about whether other hyperscalers might do the same. Still, if Okur’s estimate is accurate, liquid cooling accounts for only about 10% of Vertiv’s sales — meaning the risk is meaningful but not necessarily company-ending. Robust AI Buildout Supports Vertiv’s OutlookTrading at a forward price-to-earnings ratio near 50x, Vertiv is not a bargain; its valuation assumes significant long-term growth. Continued upside will depend on the AI-driven data center buildout remaining strong and on Vertiv maintaining its competitive advantages. Earnings from peers such as GE Vernova (NYSE: GEV) suggest that the buildout has more runway. GE Vernova, which supplies power and electrification equipment for data centers, reported it has only about 10 gigawatts of capacity left in 2029 and 2030 combined, while booking 21 gigawatts in the most recent quarter. The firm expects to begin taking orders for 2031 and beyond. Vertiv’s gross margin expanded by 400 basis points in the quarter, demonstrating pricing power and a strong competitive position — notable because new competition typically pressures margins. Several analysts upgraded Vertiv after the earnings report, pushing updated price targets to an average of roughly $339. While that implies only modest upside from current levels, it contrasts with the MarketBeat consensus price target near $272, which implies more than 10% downside. |
No comments:
Post a Comment