Upgrades - Goldman Sachs upgraded Viking Holdings (VIK) to Buy from Neutral with a price target of $78, increased from $66, citing the company's differentiated geographic exposure and higher-income demographic offsetting broader cruise trends [2] - RBC Capital upgraded RPM (RPM) to Outperform from Sector Perform with a price target of $132, up from $121, believing the shares have hit a bottom [2] - RBC Capital upgraded Colgate-Palmolive (CL) to Outperform from Sector Perform with an unchanged price target of $88, noting that estimates and expectations are appropriately low despite a difficult environment in 2026 [2] - Wolfe Research upgraded Eaton (ETN) to Outperform from Peer Perform with a price target of $413, expecting benefits from the company's electrical backlog conversion and easing cyclical tailwinds in 2026 [2] - Rosenblatt upgraded Synopsys (SNPS) to Buy from Neutral with a price target of $560, down from $605, anticipating an in-line quarter following a Q3 miss and guidance cut, with the stock having declined approximately 30% since the Q3 report [3] Downgrades - Seaport Research downgraded Warner Bros. Discovery (WBD) to Neutral from Buy without a price target, following news of a new hostile offer from Paramount Skydance at $30 per share [4] - Goldman Sachs downgraded Norwegian Cruise Line (NCLH) to Neutral from Buy with a price target of $21, down from $23, due to a less favorable risk/reward outlook for 2026 given the supply/demand dynamics in the Caribbean [4] - RBC Capital downgraded Confluent (CFLT) to Sector Perform from Outperform with a price target of $31, up from $30, after the company agreed to be acquired by IBM for $31 per share in cash, with multiple firms also downgrading the stock to Neutral-equivalent ratings [4] - Compass Point double downgraded SLM (SLM) to Sell from Buy with a price target of $23, down from $35, after the company presented an updated medium-term outlook reflecting expected growth from the Grad PLUS opportunity [4] - Wolfe Research downgraded Vertiv (VRT) to Peer Perform from Outperform without a price target, citing valuation concerns as shares have increased 14 times since the December 2022 upgrade [4]

Core Insights - Vertiv Holdings Co (NYSE:VRT) is recognized as one of the 14 Best US Stocks to Buy for Long Term [1] - Barclays raised its price target for Vertiv from $170 to $181 while maintaining an Equal Weight rating, reflecting a neutral outlook for the sector in 2026 [2] - The company is expanding its market presence through a partnership with Nvidia to develop power system solutions for upcoming 800V high-voltage direct current data centers, expected to launch in 2027 [3] - Vertiv's stock has surged nearly 60% in 2025, attributed to consistent increases in full-year guidance during earnings calls [4] - The company announced a 66.7% increase in its quarterly dividend, now at $0.0625 per share, boosting investor confidence [5] Company Performance - Vertiv's adjusted diluted EPS guidance for FY25 has been raised to $4.10 from $3.80, and adjusted operating profit guidance increased to $2.06 billion from $1.9 billion, driven by a strong backlog and pipeline [4] - The significant dividend hike reflects the company's commitment to returning value to shareholders and indicates strong financial health [5] Market Position - The partnership with Nvidia positions Vertiv as a key player in the growing data center market, particularly driven by the demand for AI technologies [3] - Barclays' outlook suggests that growth opportunities exist beyond traditional markets such as data centers, electric utilities, and aerospace, indicating a broader market potential for Vertiv [2]

Summary of Global Data Centre Equipment Market Conference Call Industry Overview - The report focuses on the **Global Data Centre Equipment** market, providing an updated outlook and analysis of key players across the value chain [2][3]. Market Growth Forecast - The **Data Centre equipment market** (including grey, white, and cooling segments) is projected to grow by **20-25% in 2026**, **15-20% in 2027**, and **10-15% annually from 2028 to 2030**. The estimated growth for 2025 is around **25-30%** [3][39]. - The **Cooling segment** is expected to grow at a **CAGR of approximately 20%** until 2030, with **Liquid Cooling** projected to grow by **45%** [3][39]. Pricing Dynamics - A **20% increase** in market **$/MW** is anticipated due to higher power density rack architectures, primarily driven by cooling and grey space [4][28]. - The **IT equipment $/MW** is expected to rise by **3-4 times**, which explains the rapid capital expenditure (capex) ramp by hyperscalers and reduces price sensitivity towards facility costs [4][28]. AI Adoption and Monetization - There is evidence of rapid adoption of **Generative AI (GenAI)**, with an annual recurring revenue (ARR) of **$17 billion**, representing **6-7%** of the current total SaaS market [5][26]. - Hyperscalers' **Capex/Sales** ratio is projected to more than double compared to 2023, reaching **25-30%**, raising questions about sustainability. However, even with 2026 estimates, capex is expected to represent **75%** of the industry's operating cash flow [5][26]. Key Players and Stock Recommendations - In **Europe**, preferred companies include **Schneider**, **Halma**, **Siemens**, **Prysmian**, and **Wartsila**. - In the **US**, favored companies are **Vertiv**, **Eaton**, **nVent**, **GE Vernova**, and **Comfort Systems**. - In **Asia**, **Delta Electronics** and **Envicool** are highlighted as key players [6][39]. Capacity and Demand Insights - The **Global Data Centre Capacity** is expected to grow significantly, with **24% year-over-year growth** in 2026 and a **21% CAGR from 2025 to 2029** [50][56]. - The **Tech 6** companies (Amazon, Microsoft, Google, Meta, Oracle, and Apple) are projected to account for **10%** of total US electricity demand by 2030, with their incremental demand surpassing the entire US utility-scale solar industry by 2028 [56][58]. Challenges and Risks - Potential risks include project delays, cancellations, and the need for stable grid connections, particularly in Europe where connections are quoted into the 2030s [57][58]. - The industry has faced equipment shortages, particularly in electrical equipment, but this has returned to normal as manufacturers ramped up capacity [57]. Conclusion - The **Global Data Centre Equipment** market is poised for significant growth driven by AI adoption, increased demand for cooling solutions, and substantial capital investments from hyperscalers. However, challenges related to infrastructure and supply chain must be monitored closely to ensure sustainable growth [5][56][57].

Core Insights - Vertiv Holdings, based in Ohio, has gained attention due to its products for data centers amid the AI boom, transitioning from a lesser-known company to a more exciting investment opportunity [1] - The stock has experienced increased volatility, currently sitting more than 10% off its recent highs, raising questions about its performance for both short-term and long-term shareholders [2] One-Year Performance - Over the past year, Vertiv's stock initially rose by 20.8% in January but faced a significant decline, dropping 53.2% by April. However, it has since recovered and is now up 40.8% year-over-year, outperforming the S&P 500, which returned 13.4% [3][5] Three-Year Performance - Vertiv's stock has shown remarkable growth, with a three-year return of 1,110%, significantly surpassing the S&P 500's 68.3% return during the same period [4] Five-Year Performance - The five-year return for Vertiv stands at 822.3%, still outperforming the S&P 500's 86.7% return, but this is nearly 300 percentage points lower than its three-year return, indicating a decline in growth momentum [4] Historical Context - The decline in Vertiv's stock in 2022 was attributed to a poor Q4 2021 earnings report, where the company reported a $3.9 million operating loss compared to a $120 million profit the previous year, alongside a 95% drop in free cash flow, leading to a 67% decline in share price at one point [6]

Core Insights - The AI industry is evolving, leading to new challenges that larger cloud computing providers may not be equipped to handle, creating opportunities for specialized companies like Vertiv [3][5][19] - Vertiv is gaining recognition within the AI computing community for its ability to address unexpected challenges related to electricity consumption and data center cooling [5][6][9] Industry Overview - The electricity consumption from AI data centers is projected to increase by over 30 times from last year to 2035, emphasizing the need for cost-effective energy solutions [6] - The global data center cooling market is expected to grow at an average annual rate of 12% until 2034, reaching a value of over $200 billion [8] Company Profile: Vertiv - Vertiv has a market capitalization of less than $100 billion and is not widely recognized outside the AI computing community [4] - The company provides essential solutions for data center owners, including efficient power delivery and advanced cooling systems [5][9] - Vertiv's PowerDirect In-Rack systems achieve 97.5% efficiency, minimizing power input and heat generation [10] - The company offers technology tailored for the fluctuating power needs of AI data centers, including automatic static transfer switches and battery-based storage systems [11] - Vertiv's SmartRun infrastructure system integrates power distribution, cooling, and networking into a modular platform, allowing for easy adjustments [12] Competitive Landscape - Vertiv is not the only player in the AI cloud computing space; other companies like CoreWeave, Nebius, and Iren are also emerging [14][15] - However, Vertiv stands out due to its consistent profitability and significant revenue growth, with a 29% year-over-year increase in net revenue to nearly $2.7 billion [16][18] Growth Potential - The AI data center business is projected to grow at an average annual rate of over 28% through 2034, indicating strong demand for infrastructure solutions like those offered by Vertiv [18] - Vertiv's established profitability and growth trajectory present a favorable risk-reward scenario for investors looking to capitalize on this industry trend [19]

Core Insights - Vertiv Holdings Co has successfully completed the acquisition of Purge Rite Intermediate LLC for approximately $1.0 billion, enhancing its capabilities in specialized fluid management services for high-density computing and AI applications [1][2][3] Group 1: Acquisition Details - The acquisition of PurgeRite strengthens Vertiv's thermal management services and positions it as a leader in next-generation thermal chain services for liquid cooling systems [1][2] - PurgeRite is recognized for its expertise in mechanical flushing, purging, and filtration services, particularly for data centers and mission-critical facilities [4] Group 2: Strategic Benefits - The integration of PurgeRite's capabilities is expected to improve system performance through enhanced heat transfer and equipment efficiency, while also reducing the risk of downtime [3] - The acquisition allows Vertiv to provide end-to-end product and service support for high-density computing and AI applications, where efficient thermal management is essential [2][3] Group 3: Company Background - Vertiv is a global provider of critical digital infrastructure, operating in over 130 countries, and offers a portfolio of power, cooling, and IT infrastructure solutions [6]

Stock Recommendations & Target Price Adjustments - Robinhood's target price increased to $172 from $145, with an "outperform" rating reiterated by Mazouo [1] - City sets Delta's price target at $77 [2] - GE Verova's target price increased to $720 from $710, with an "overweight" rating [4] - Vertiv's target price increased to $181 from $170, with an "overweight" rating [4] - GE Aerospace initiated with a "buy" rating at Susuana with a target of $350 [7] Company Performance & Market Dynamics - Robinhood is seen as having matured and diversified its product stream, making it a better exchange to own in the financial sector [2] - Delta's underperformance and capacity cuts are considered a tactically bullish cyclical setup for 2026 [3] - GE Verova benefits from utility companies' capital expenditure (capex), with 80% of its customers being utility companies investing in transmission and the grid [5] - Vertiv experiences strong organic sales growth at 28.4% and expanding margins, up 220 basis points last quarter, driven by liquid cooling demand [6] - GE Aerospace has consistently beaten earnings, EBIT, sales, organic growth, and free cash flow for the last four quarters, with services accounting for 70% of revenues and $31 billion in trailing 12-month service orders [8] Industry Trends & Observations - Stabilization of cryptocurrencies is seen as a positive factor for Robinhood [1] - Power generation and industrial/utility names are viewed as potential replacements for traditional oil names in portfolios [7]

As 2025 comes to an end, just a few growth stocks have stood out. One of them is Vertiv Holdings (VRT), a key supplier of the power, cooling, and infrastructure systems that keep data centers running, especially the massive new artifical intelligence (AI) data centers being built worldwide. Vertiv stock has surged 52% year-to-date, surpassing most tech heavyweights and the overall market. With record orders, surging demand, and a growing technology moat, Vertiv’s best years may still be ahead, which is lik ...

Core Viewpoint - Vertiv Holdings Co (NYSE:VRT) is gaining attention as a key player in the AI data center sector, with positive outlooks from TD Cowen regarding its stock performance driven by increasing demand for data centers in the US [1][2][3] Group 1: Stock Performance and Ratings - TD Cowen raised its price target for Vertiv to $211.00 from $210.00 while maintaining a "Buy" rating, reflecting optimism about the company's growth prospects [1] - Vertiv has been included in TD Cowen's "Best Ideas 2026," indicating strong expectations for order growth and margin improvements as AI data center demand rises [2] Group 2: Market Demand and Trends - Recent checks show that US data center demand is accelerating, with an estimated 11GW leasing pipeline and solid leasing activity observed in the current quarter [2] - The company is positioned to benefit from approximately 11.3GW of year-to-date data center leasing tracked through channel checks up to the third quarter of 2025 [3] Group 3: Margin and Cost Dynamics - Equipment checks indicate favorable price and cost dynamics that are expected to support margins in the second half of 2026 and beyond [3] - Vertiv is viewed as a strategic investment in the AI data center theme, likened to a "picks and shovels" approach, capitalizing on the demand from hyperscale data centers [3]

Company Overview - Vertiv Holdings Co (NYSE:VRT) specializes in manufacturing and managing power and cooling systems for data centers and digital networks, along with providing services to ensure these systems operate efficiently [2]. Recent Performance - The stock of Vertiv saw a significant increase of 54% leading up to the last quarter, indicating strong market performance prior to the earnings report [2]. - The company reported exceptionally strong earnings, which were anticipated by analysts, leading to a situation where the expected results did not significantly impact the stock price [2]. Market Sentiment - There was a temporary decline in Vertiv's stock price attributed to concerns over a cooling system failure at a CME Group data center, which led to speculation about Vertiv's involvement [1]. - Despite the market's reaction, the order book for Vertiv remains robust, suggesting continued demand for its products, particularly the Liebert cooling systems, which are highly regarded in the industry [1].