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  • Writer's pictureAbacus Research

Vertiv (VRT) - Datacentre play on AI theme

Vertiv is a leader in critical infrastructure for datacentres and a clear beneficiary of AI driven growth.

  • AI tailwind for datacentres is only starting. To date, Vertiv has seen little to no impact from AI in revenue growth.

  • We see  incremental margins of 30-35% as very achievable on volume growth. Leading to EPS growth of 30%+ per year from 2024 to 2026.

  • Operating margins increase from 15% in 2023 to ~20% in 2026 in our base case scenario

Potential Upside:     $100 (+23%)

Sensible Downside: $63 (-22%)

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