Summary:
⚈ Analysts maintain a bullish outlook with a $113 average price target.
⚈ Trade war risks and bubble fears still threaten data center stocks.
Thanks to its latest and better-than-expected earnings report, Vertiv (VRT), a data center infrastructure provider, reversed its prevailing 2025 stock market downtrend and soared in the Wednesday extended session.
Specifically, while the year-to-date (YTD) chart shows it had declined 39.29% to its latest closing price of $71.82, the pre-market saw it rally 18.35% to VRT’s press time price of $85.
The results and reversal provide a compelling ‘buy’ case for Vertiv shares as they are, as of April 23, backed by substantial upward momentum and fueled not only by the 49% year-over-year (YoY) earnings-per-share (EPS) growth to $0.64 and sales YoY rise of 24% to $2.04 billion, but also by an upgraded 2025 guidance.
Indeed, Vertiv now expects its net sales for the year to be between $9.325 billion and $9.575 billion, significantly above the previous forecast of between $9.125 billion and $9.275 billion.
Analysts exceedingly bullish on VRT stock despite 2025 crash
Considering the absence of prominent analyst price target revisions in the wake of the filing, the previous ‘strong buy’ consensus rating and average $113 12-month price target Finbold retrieved from TradingView on April 23 becomes even more bullish.
The positive picture is likewise reinforced by the fact that the lowest recorded forecast of $73 is above the latest closing price, while the highest would see VRT stock rise as high as $146. Similarly, none of the 25 analysts recorded on TradingView consider Vertiv shares a ‘sell,’ while four are ‘neutral,’ three are in favor of buying, and eighteen see the equity as a ‘strong buy.’
Why Vertiv shares could continue crashing
Elsewhere, some caution is still warranted. Despite President Trump softening his rhetoric somewhat, the trade war and the general unpredictability of the current U.S. administration continue to be major drivers of economic instability.
Simultaneously, the data center sector could be particularly risky, as Microsoft’s (NASDAQ: MSFT) decision to scale down its related projects and Alibaba (NYSE: BABA) Chairman Joe Tsai’s comments that the industry may have become a bubble, showcase that a crash is plausible.
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