Vertiv 'A'

Vertiv shares plunged about 6.7% intraday to $245.17, weighed down by growing skepticism over the acquisition of UtilityInnovation Group (initial purchase price ~ $1.45bn, potentially up to ~ $2.6bn including earn-outs) and a lack of disclosures on UIG’s revenue, backlog and cash flow. A disappointing second quarter—missing revenue expectations by roughly $110m—and analyst target cuts also pressured the stock. A high forward valuation (a forecast‑based 13x EBITDA multiple for 2027), new regulatory risks for data centers in Massachusetts and a weak market added to the heavy selling pressure. » Mere på de.investing.com

At the Goldman Sachs Communacopia + Technology Conference, Vertiv lifted its targets for organic revenue growth for 2025–2030 to 20–22% CAGR and its adjusted operating margin to above 27% by 2030. Management cited stronger, more global demand for data center infrastructure—particularly from hyperscalers and AI applications—and a broader product mix in power and thermal management as reasons for the tougher targets. Vertiv highlighted progress on converged infrastructure (OneCore, SmartRun), plans commercial rollout of 800‑volt DC systems in late 2027/2028, and views the acquisition of Utility Innovation Group as a strategic benefit. The stock rose sharply on the announcements, and management characterizes the implementation complexity as a coordination challenge rather than a supply‑chain problem. » Mere på de.investing.com

Vertiv reported Q2 sales up 24% to $3.27 billion, an adjusted operating margin of 22.6% (up 410 basis points) and adjusted free cash flow of $925 million. The company benefits from rising power and thermal content per AI rack, but faces risks from project timing, supply congestion and expectations tied to long-duration demand. Hedge fund ownership increased quarter‑over‑quarter, highlighting investor interest, while valuation depends on continued margin durability and cash conversion. » Mere på finance.yahoo.com