This 'premier' data center play has 30% upside ahead, says BMO
Data center demand will continue to push this digital infrastructure company higher, according to BMO Capital Markets.
TL;DR
- BMO Capital Markets initiated coverage of Vertiv with an outperform rating and a $329 price target.
- Demand for AI data centers is a key driver for Vertiv's stock.
- Vertiv provides digital infrastructure and hardware for data centers, which constitute about 85% of its revenue.
- The company's shares have already experienced substantial growth and may offer an attractive entry point.
- The U.S. is seeing significant investment in new data centers, with substantial land purchases for future facilities.
- Vertiv's management estimates its total addressable market is increasing annually, with data centers growing at a high rate.
- Vertiv offers a full suite of integrated power and thermal management solutions for data centers.