Published March 26, 2025

02:53 PM EDT

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Key Takeaways

  • Vertiv shares fell more than 10% Wednesday after Barclays analysts cut their price target for the maker of cooling systems for AI data centers.
  • Vertiv is “well-placed” for revenue and profit growth this year, but is “vulnerable to any hint” of slowing spending on data centers, the analysts wrote.
  • The analysts cut their price target to $100 from $111 previously, well below the roughly $139 analyst consensus.

Shares of Vertiv Holdings (VRT) slumped more than 10% Wednesday after Barclays analysts cut their price target for the maker of cooling systems for artificial intelligence (AI) data centers.

In a note previewing first-quarter results for a range of multi-industry companies, the analysts on Wednesday maintained their “equal weight” rating for Vertiv, but cut their price target to $100 from $111 previously.

That price target is well below the $139.17 analyst consensus compiled by Visible Alpha. Barclays analysts also have the lowest price target and the lone “hold” or equivalent rating, with the 11 other analysts tracked rating it as a “buy.”

Vertiv Stock Closely Tied to Pace of Data-Center Spending

The analysts said that Vertiv “looks well-placed for superior top- and bottom-line growth in 2025, due to its high Datacenter exposure.” However, they added the stock “remains vulnerable to any hint of cooling hyperscaler [capital expenditures]” in 2026 and beyond.

They wrote that commentary about AI spending “is likely to become more muted amidst uncertain demand and very large capacity/supply increases,” citing recent remarks from Alibaba Group (BABA) Chairman Joe Tsai, who recently warned of a “bubble” forming in data-center construction.

Vertiv shares were down 11% intraday Wednesday, almost 50% below their record closing high of $153.49 on Jan. 23.

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  1. Barclays. “Q1 Preview: Revenue and Margin Pressure, Alongside Lower Investor Expectations; ‘Barbell’ of Early Cycle & SCI Self-Help, plus Electric Utility Capex, Looks Attractive.”

  2. Bloomberg. “Alibaba’s Tsai Warns of ‘Bubble’ in AI Data-Center Buildout.”