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Takeaways
- Vertiv shares fell on Wednesday after Barclays analysts reduced their price target for this maker of cooling systems used in AI data centers.
- Vertiv is "well-placed" for revenue and profit growth this year, but is "vulnerable to any hint" of slowing spending on data centers, the analysts wrote.
- Analysts have cut their price targets to $100, down from $111, which is well below the analyst consensus of $139.
Barclays analysts lowered their price target for Vertiv Holdings Inc. (VRT) on Wednesday, after the company’s maker of cooling solutions for artificial intelligence data centers (AI) was impacted by their decision.
In a report on the first quarter results of several companies from different industries, the analysts maintained Vertiv’s “equal weight”, but cut its price target, which was previously $111, to $100.
This price target is below the $139.17 consensus analyst rating compiled by Visible Alpha. Barclays analysts also have the lowest price target and the lone "hold" or equivalent rating, with the 11 other analysts tracked rating it as a "buy."
Vertiv Stock closely tied to pace of data-center spending
Analysts said that Vertiv is “well-positioned for superior top and bottom line growth in 2025 due to its high Datacenter Exposure.” They added that the stock “remains susceptible to any hint or cooling hyperscaler [capital expenditures]” in 2026 and beyond
They wrote that the commentary on AI spending is “likely to become more muted amid uncertain demand and very high capacity/supply increases,” citing remarks made by Alibaba Group (BABA), Chairman Joe Tsai who recently warned about a “bubble”, forming in data center construction.
Vertiv shares closed down 11% on Wednesday, about 50% below the record closing high of 153,49 dollars set on Jan. 23, 2009. Stocks fell across the board during the session. Tech stocks were particularly hard hit.
This article has been updated with the latest share price information.
