First Read Vertiv Holdings Co: Solid results despite some timing noise

研报英文原文证据摘录

First Read Vertiv Holdings Co: Solid results despite some timing noise

Forecast returns

Forecast price appreciation 37.3%

Forecast dividend yield 0.1%

Forecast stock return 37.3%

Market return assumption 9.3%

Forecast excess return 28.0%

Company Description

Vertiv Holdings Co provides critical digital infrastructure for data centers, communications

networks, and commercial/industrial environments.

Valuation Method and Risk Statement

Our price target is based on relative PE valuation methodology.

Risk Statement: The Electrical Equipment and Multi Industry sector faces a broad range of

risks. It is cyclical in nature with exposure to the underlying cycles inherent in everything from

aviation, auto, trucking and trains to construction and consumer electronics to mining,

power, oil and gas and more depending on the specific stock. EEMI companies are subject to

risks associated with unexpected changes in the underlying global macro environment,

currency and interest rate movements, commodity price inflation as well as company-specific

execution, M&A, integration, labor relations and changes in the competitive or regulatory

environment. These changes can be in the form of product technology, e-commerce and

other digital disruption and/or channel disintermediation. Capacity and related pricing

pressures are also a risk through the cycle. Finally, these multinational companies are subject

to policy changes taking place in the United States and internationally, including those related

to environmental regulation and tariffs.

Specific to the company, risks include slowing growth and misexecution. Any slowing

demand activity in data centers could have a material impact due to VRT's high exposure to

data centers.