Vertiv: A Pick-and-Shovel Play on Generative AI

We rate Vertiv Holdings Co (VRT) Strong Buy and see its shares rising by 20% to $75 in 12 months. We based this on a 26.5x P/E multiple and forecast earnings per share of $2.82 for 2025. VRT provides end-to-end solutions for thermal and power management and is set to benefit from increased investments in data centers and AI infrastructure. We expect VRT's pricing power to drive margins higher, supporting our forecast for double-digit earnings growth in 2024 and beyond.