Vertiv Stock Rallies 14% as Orders More Than Double: Bank of America Still Sees 55% Upside

Three months ago, Vertiv Holdings Co. (NYSE:VRT) left investors worried about supply chain problems after its latest earnings report.

On Wednesday, the data center equipment maker answered with the largest revenue beat in its history as a public company.

The stock jumped 14% to $237.48 by 11:30 a.m. ET, adding about $11 billion in market value.

Even after that move, Bank of America Global Research sees room for more than 50% upside.

The Biggest Revenue Beat Since Vertiv Went Public

Vertiv reported third-quarter revenue of $4.31 billion, up 61% from a year earlier. That was 15% above consensus.

According to Bank of America analyst Andrew Obin, it was “the largest revenue beat versus consensus in the company’s public history,” in both percentage and dollar terms.

The surprise came from the region investors feared most.

After last quarter’s internal supply chain issues, the Americas were the key concern. Instead, Americas revenue reached $2.99 billion, 19% above the $2.51 billion analysts expected, according to the note.

As a result, adjusted earnings came in at $2.21 per share, well ahead of the $1.82 consensus. Adjusted operating margin widened to 25.2%, up 290 basis points from a year earlier.

Orders More Than Doubled, and Guidance Rose by More Than the Beat

Organic revenue grew 55%, well above the company’s 34% to 36% guidance. Growth beat guidance in every region: 66% in the Americas, 48% in Asia Pacific and 19% in Europe, the Middle East and Africa.

Meanwhile, organic orders grew more than 100% from a year earlier.

“We are in the middle of the largest infrastructure buildout and it’s accelerating,” CEO Giordano Albertazzi said in the earnings release.

He added that “our more than 100% organic orders growth year over year and our overall performance are clear testaments” to customers choosing Vertiv across the full lifecycle of their projects.

Obin noted that the orders trend is consistent with what Schneider Electric and ABB have reported in data centers.

Management then raised its full-year outlook by more than the size of the quarterly beat.

Vertiv now expects 2026 adjusted earnings of $7.10 to $7.20 per share, up from $6.65 to $6.75 and above the $6.66 consensus. It also lifted its revenue range by $650 million at the midpoint to $14.45 billion to $14.85 billion, compared with the $14.02 billion Wall Street expected.

For the fourth quarter, the company guided to adjusted earnings of $2.22 to $2.28 per share, above the $2.20 consensus, with organic growth of 37% to 39% against 34% expected, according to Bank of America.

Wall Street Had Been Cutting Targets Into the Report

Bank of America reiterated its Buy rating and $375 price objective, citing Vertiv’s position in the fast-growing data center market.

That target sits about 58% above the current share price.

The broader Street was far more cautious heading into the print. According to Benzinga Analyst Ratings, Vertiv carries a consensus Buy rating from 25 analysts, with an average price target of $314. That implies about 32% upside from current levels.

Yet three firms trimmed their targets earlier this month, ahead of the report.

The lone bear is Gordon Johnson of GLJ Research, who initiated coverage with a Sell rating and a $188 target earlier this month. That target sits about 21% below where the stock trades today.

The Stock Is Still Far From Its Record High

Wednesday’s jump lifts Vertiv’s year-to-date gain to about 40%.

Even so, the shares remain about 37% below an all-time high near $380. In other words, Bank of America’s $375 target would take the stock almost all the way back to its peak.

Investors looking for broader exposure to the theme can turn to the Defiance AI & Power Infrastructure ETF (NASDAQ:AIPO), which holds Vertiv. The fund rose 1.4% on Wednesday and is up 14% this year.