Is Vertiv Holdings a buy?

In his earnings preview, Roth Capital Markets analyst Justin Clare maintained his “Buy” rating on Vertiv Holdings (Vertiv Holdings Stock Quote, Chart, News, Analysts, Financials NYSE:VRT), raised his target to $335.00 from $275.00 and increased his 2027 estimates, saying the company remains central to the AI infrastructure buildout and appears set up for another strong quarter.

On April 16, Clare said first-quarter guidance looks conservative relative to Vertiv’s roughly $15-billion backlog and continued demand strength. He is forecasting first-quarter revenue of $2.66-billion, above the midpoint of guidance and ahead of consensus, with adjusted EPS of $1.02 versus the Street at $1.00.

The analyst said upside could come from faster backlog conversion, even as near-term margin expansion may be tempered by capacity ramp costs.

For 2026, Clare maintained his revenue forecast of $13.7-billion, above the midpoint of company guidance and slightly ahead of consensus. He said Vertiv’s outlook still appears conservative given backlog conversion assumptions well below historical levels and management’s comments that demand remains strong. He is modelling adjusted operating margin of 22.5% and adjusted EPS of $6.09 for the year.

Clare said Vertiv exited 2025 with exceptionally strong order momentum, with fourth-quarter organic orders up 252%year over year and backlog up 109% to a record level. He said the company continues to benefit from hyperscaler spending, growing adoption of prefab solutions and liquid cooling, and rising system complexity, all of which are helping increase content per megawatt.

Clare said Vertiv will stop reporting quarterly orders, order forecasts and backlog beginning with first-quarter results, citing volatility from lumpy order timing, though annual backlog disclosure will continue. Even so, he said the broader setup remains favourable as hyperscaler capex estimates keep moving higher and Vertiv expands capacity both organically and through acquisitions.

The analyst raised his 2027 forecast to revenue of $17.1-billion from $16.2-billion and adjusted EPS to $7.88 from $7.31, saying stronger backlog growth and the potential for another year of order growth in 2026 support higher estimates.

Vertiv is scheduled to report first-quarter results before the market opens on April 22.

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