Bull of the Day: Vertiv (VRT)

Core Viewpoint - Vertiv (VRT) is experiencing significant growth, with shares tripling in the past year, driven by robust demand for data center infrastructure solutions, particularly in the AI sector [1][3][5]. Company Overview - Vertiv is a key provider of data center infrastructure solutions, offering hardware, software, analytics, and services essential for high-performance computing [2][4]. - The company has partnered with Nvidia to address future data center efficiency and cooling challenges [4]. Financial Performance - Vertiv reported a beat-and-raise quarter on October 23, attributed to strong demand for its digital infrastructure products [3][5]. - Following an investor day on November 18, shares surged over 14%, and analysts raised next year's EPS estimates from $3.50 to $3.58 [7][8]. Growth Projections - Vertiv anticipates organic sales growth of 16% to 18% for 2025, with a preliminary EPS forecast of $3.50 to $3.60 [7][10]. - The company expects the data center market to grow by 10% to 13% through 2029, with its own sales growth projected to average around 13% annually [10]. Revenue Estimates - Revenue projections are as follows: - 2023: $6.86 billion - 2024E: $7.8 billion - 2025E: $9.158 billion - 2026E: $10.42 billion - For 2025, sales growth is expected to accelerate to 16% to 18% [11]. Operational Highlights - Vertiv's service headcount increased by 14% year-over-year, service centers grew by 29%, and AI-focused training surged by 370% year-over-year [11]. - Liquid cooling product offerings have doubled year-over-year, indicating a strong focus on innovative solutions [12]. Market Position - 75% of Vertiv's revenue is derived from data centers, with the remaining 25% from thermal solutions [13].