On Thursday, TD Cowen affirmed a positive stance on Vertiv Holdings Co. (NYSE:VRT) shares by raising its price target to $115 from the previous $93 while sustaining a Buy rating on the stock. The decision comes after Vertiv reported robust financial results for the third quarter of 2024. Despite noting a lackluster growth in orders for the same period, the analysts remain optimistic.
The company did not provide guidance on order growth, which typically serves as an indicator for future revenue. However, the management's mention of a record pipeline has been a source of encouragement. This, along with evidence from market checks suggesting that demand for equipment has picked up in recent months, has contributed to the analyst's continued positive outlook.
TD Cowen's analysis points to a keen anticipation of long-term margin outlook and expectations for the year 2025, which are expected to be detailed during Vertiv's Investor Day in November. The firm's position on Vertiv's prospects remains positive, barring any slowdown in the demand from hyperscale data centers, which are a significant part of Vertiv's customer base.
The statement from the analyst at TD Cowen reflects confidence in Vertiv's future performance, particularly in light of the company's strong third-quarter results.
The raised price target indicates an expectation that the stock will perform well in the market, despite the current absence of order growth guidance. The market will be looking forward to the Investor Day in November for further insights into the company's strategic plans and financial expectations.
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