Vertiv Earnings on Deck – Analysts Raising Expectations on Stock (VRT) Leading In

Vertiv Holdings Co. (NYSE:VRT) heads into this morning's Q2 earnings release (before the open) on the back of an impressive bull run. The announcement arrives on the heels of a strong market rally, one which has seen Vertiv's stock price add 140% since the close on April 4th, and 95% in the 12 months leading in.

Wall Street anticipates strong Q2 results, with analysts expecting an EPS of $0.83, reflecting nearly 24% growth compared to the prior-year quarter. Revenue is projected to rise 20.69% year-over-year to $2.36 billion. These expectations are fueled by sustained demand for cloud, AI, and data center infrastructure solutions.

Vertiv's strategic alignment with NVIDIA’s AI roadmap is a significant catalyst for future growth. The company is positioned to support NVIDIA's evolving compute demands with advanced power and cooling infrastructure, staying one GPU generation ahead of NVIDIA's Kyber and Rubin Ultra platforms.

Analysts are seemingly on board with the trajectory that VRT has been charting.

Bank of America Securities analyst Andrew Obin recently increased the price target for Vertiv stock to $150 from $140, reiterating a Buy rating. This positive sentiment reflects confidence in Vertiv's ability to capitalize on the growing demand for its products and services.

Roth Capital also raised their target yesterday from $100 to $157, retaining a Buy rating. The firm sees more upside in the stock, with expectations of strong demand for liquid cooling and AI infrastructure ahead of the quarter.

Looking to new coverage, William Blair initiated VRT on Monday, and began with an Outperform rating, with the strength of the backlog, and margin expansion setting up the stock to beat broader markets over the upcoming year.

Vertiv's Q1 2025 results set the stage for this report, highlighting a 24% year-over-year increase in sales, reaching $2.04 billion. Earnings per share (EPS) for the quarter were $0.64, surpassing analyst expectations of $0.62. The company also raised its full-year revenue guidance, citing robust end-market demand and a growing backlog.

While the prevailing sentiment surrounding Vertiv is overwhelmingly positive, a more cautious outlook might be warranted leading in to the print. The company's reliance on a few key partnerships, while currently beneficial, introduces a concentration risk.

Furthermore, the high valuation multiples suggest that much of the expected growth is already priced into the stock. Therefore, while Vertiv presents a compelling growth story, investors should remain vigilant and consider the potential downside risks.

Markets are expecting the company to perform it seems, with no fewer than 7 upside revisions to EPS targets in the month leading in to the print, and no downward revisions. The outlook for next year has seen a more mixed view however, with 6 upside revisions, and 3 to the downside.