Vertiv Holdings Co (VRT.N): Earnings Momentum Should Continue; Reiterate Buy

Research evidence excerpt

Vertiv Holdings Co (VRT.N): Earnings Momentum Should Continue; Reiterate Buy

Action |

29 Jul 2026 19:36:22 ET │ 13 pages

Vertiv Holdings Co (VRT.N)

Earnings Momentum Should Continue; Reiterate Buy

CITI'S TAKE

Following VRT’s 2Q26 results, we think light Americas organic growth and

growing investor concern/focus on data center infrastructure buildout

weighed on the stock (VRT -17.3% vs. XLI -3.2%). That said, we continue to Buy

be buyers of VRT shares given, in our view, a growing global pipeline of Price (29 Jul 26 16:00) US$223.04

opportunities supported by robust DC infrastructure investments, VRT’s

market leader position (see below for our take on the 800VDC debate), solid Target price US$358.00↓

margin expansion runway (we estimate >30% incremental margins through from US$414.00

2028 supported by operating leverage, productivity actions, and +ve Expected share price return 60.5%price/cost), and significant capital deployment flexibility.

Expected dividend yield 0.3%

Additional Thoughts — While Americas organic growth of ~21% was lighter than our Expected total return 60.8%

expectation, we expect organic growth to reaccelerate given a robust pipeline of Market Cap US$85,672M

opportunities (both domestically and internationally) and expected resolution of

supply chain/project execution challenges in 2H26. Importantly, VRT has continued

to deliver solid margin expansion while simultaneously navigating a fluid

environment and meaningfully expanding its capacity, and with the company

Price Performancecontinuing to focus on its operational execution and productivity actions, we think

VRT could continue to deliver 30%+ incremental margins through (at least) FY28. (RIC: VRT.N, BB: VRT US)

We understand investor consternation regarding the delays in the Americas, but we