BMO Capital Markets initiates coverage of Vertiv with outperform rating, $329 target

by@CNBC

Summary

BMO Capital Markets has initiated coverage of Vertiv, projecting a 30% upside for the company's shares due to the rising demand for artificial intelligence data centers, which constitute about 85% of Vertiv's revenue. Analyst Daniel DiCicco described Vertiv as a "premium data center play," noting that the company has experienced a more than 900% increase in stock price over the past five years, despite a recent pullback from its May peak. With over 4,700 data centers in the United States and substantial investment in new facilities—$6 billion spent on land purchases in the first half of 2026—a growth rate of 18% to 20% for data centers is anticipated. This trend aligns with the broader industry push for comprehensive power and thermal management solutions as facilities become increasingly complex.

Tokens

$VRT

Analysis

Vertiv: Vertiv is a provider of digital infrastructure and hardware solutions, with data centers accounting for the majority of its business. The company specializes in power and thermal management systems designed for high-performance computing environments. BMO Capital Markets analyst Daniel DiCicco highlighted Vertiv as a leading player in the expanding AI data center sector, initiating coverage with an outperform rating due to its integrated offerings and positioning for future scale and deployment needs. Daniel DiCicco: Daniel DiCicco is an equity research analyst at BMO Capital Markets covering technology and infrastructure sectors. He authored the firm's initiation report on Vertiv, emphasizing the company's role in supporting growing data center requirements for power intensity and rapid deployment. DiCicco's analysis positions Vertiv favorably amid broader industry shifts toward AI-driven infrastructure. Industry Trend: Demand for artificial intelligence infrastructure continues to drive expansion of data center facilities and related equipment needs. Market Position: Providers offering comprehensive power and thermal management solutions are increasingly favored as data centers scale in complexity and intensity.

Categories

tech
View Original Tweet