Vertiv (VRT) made a significant impact on Wall Street during an investor event on Monday. The data center infrastructure provider showcased its long-term outlook and received a flurry of bullish reports, leading to a notable jump in its stock price.
Vertiv's Investor Event Sparks Stock Surge
Investor Event Highlights
The Westerville, Ohio-based company held its investor event in Atlanta in conjunction with the SC24 high-performance computing conference. Here, Vertiv exhibited its latest technology, demonstrating its prowess in the data center industry. It reaffirmed its targets for 2024 and provided a sales outlook for 2025 that exceeded consensus estimates. The company also raised its long-term sales growth and profit margin targets through 2029, now expecting revenue growth of 12% to 14% per year and 25% operating margins. Its prior targets were 8% to 11% sales growth and 20%-plus operating margins.This positive news was well-received by analysts. Evercore ISI analyst Amit Daryanani maintained his outperform rating on Vertiv stock with a price target of 150. At least six Wall Street analysts raised their price targets on Vertiv stock after the event. Oppenheimer analyst Noah Kaye reiterated his outperform rating and increased his price target to 131 from 121, highlighting that infrastructure bottlenecks seem to play to Vertiv's competitive strengths. TD Cowen analyst Michael Elias kept his buy rating and upped his price target to 141 from 115, noting that while he is skeptical of the long-term guidance assuming no degradation in the hyperscale demand environment, demand strength heading into 2025 remains encouraging.Stock Performance
In midday trading on the stock market today, Vertiv stock leaped more than 10% to 136.26, hitting an all-time high. This surge in stock price reflects the market's positive response to Vertiv's performance and outlook. Vertiv stock is now on three IBD lists: IBD 50, Big Cap 20, and Leaderboard, further highlighting its significance in the market.The company also raised its regular annual cash dividend by 50% to 15 cents a share from 10 cents, to be paid quarterly, providing additional value to shareholders.Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software, and semiconductor stocks.