Key Stats for Vertiv Holdings Co Stock
- Past-Week Performance: 20%
- 52-Week Range: $54 to $256
- Valuation Model Target Price: $323
- Implied Upside: 38%
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What Happened?
Vertiv stock rose about 20% this week, finishing near $235 per share as investors reacted to blowout fourth quarter results and strong 2026 guidance released this week.
The sharp move reflected renewed confidence in accelerating AI-driven data center demand and earnings visibility.
Shares surged because Vertiv delivered explosive order growth and materially raised forward expectations, signaling that AI infrastructure spending remains strong.
Organic Q4 orders jumped 252% year over year with a 2.9x book-to-bill ratio, pushing backlog to $15 billion, more than double last year and up 57% sequentially.
Adjusted diluted EPS came in at $1.36, up 37%, on 19% organic sales growth and a 23.2% adjusted operating margin.
CEO Gio Albertazzi said the surge in large orders reflected “customers’ increasing trust in Vertiv’s ability to deliver at scale,” while management guided for 2026 adjusted EPS of $6.02 on $13.5 billion of sales, implying 28% organic growth and 22.5% margins.
Institutional activity also drew attention. ABN Amro Investment Solutions raised its stake by 274.9% in Q3, while Candriam S.C.A. increased its position by 19.9%.
State of New Jersey Common Pension Fund D added shares. Despite selective trimming by Wedbush, CIBC, Rhumbline, and New South Capital, institutional ownership remains near 89.9%.
The combination of record order acceleration, rapidly expanding backlog, margin expansion, and a step-up in 2026 guidance provided clear fundamental catalysts behind this week’s move higher.
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Is Vertiv Holdings Co Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 23%
- Operating Margins: 24%
- Exit P/E Multiple: 28x
Revenue is projected to grow from about $10.2 billion in 2025 to more than $13.5 billion in 2026, supported by 28% organic sales growth as AI-driven data center buildouts continue to accelerate.
Rising power density per rack increases demand for integrated power systems, liquid cooling, and prefabricated infrastructure, positioning Vertiv at the center of next-generation capacity expansion.
The $15 billion backlog provides unusual revenue visibility for an industrial technology company and reduces near-term execution risk.
Large system-level deployments such as SmartRun and OneCore, along with expanding service capabilities tied to a growing installed base, support durable revenue streams beyond initial equipment sales.
This supports the view that future returns depend more on backlog conversion, pricing discipline, and operating leverage than on speculative demand.
Capacity expansion, with CapEx rising to 3% to 4% of sales in 2026, positions the company to meet growth without materially pressuring margins.
Based on these inputs, the model estimates a target price of $323, implying about 38% total upside over roughly 2.9 years, indicating the stock appears undervalued at current levels.
Execution in 2026 will hinge on sustained Americas momentum, expected EMEA reacceleration in the second half of the year, margin durability, and continued AI infrastructure investment.
At current levels, Vertiv appears undervalued, with future performance driven by earnings expansion, backlog conversion, system-level product adoption, and structural AI infrastructure growth rather than short-term momentum.
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