Citi Sees Big Upside in Vertiv (VRT)- Here's Why the Stock Now Has a $130 Price Target

Vertiv Holdings Co (NYSE:VRT) is one of the 12 AI Stocks Every Investor Should Be Watching. On June 16, Andrew Kaplowitz from Citi maintained a “Buy” rating on the stock with a price target of $130.00. The price target raise follows Vertiv’s strong positioning in the growing data center market and its growth potential.

In particular, Kaplowitz noted how the company is well-positioned to capitalize on the durable growth in AI and data center-related markets, which are anticipated to see global data center IT load growth of 14% CAGR through 2030.

Since Vertiv boasts the potential to focus on innovation and self-help initiatives, it holds the ability to outgrow the industrial market. The firm is particularly confident about the company’s strategy to mitigate tariff headwinds over time, with Vertiv anticipated to reach tariff-neutral status by the end of 2025.

Citi believes that Vertiv’s strong operational leverage and capital deployment opportunities will support “a solid runway for ramping margin expansion over time.” This includes potential mergers and acquisitions or share repurchases, and is expected to support earnings growth.

Based on these solid fundamentals and potential for improved performance, the firm has increased the EV/EBITDA target multiple and the target price for Vertiv’s stock.

Vertiv Holdings Co (NYSE:VRT) is a global provider of digital infrastructure technology and services for data centers, communication networks, and commercial and industrial facilities.

While we acknowledge the potential of VRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.