Shares of Vertiv Holdings (VRT) slumped nearly 11% 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 finished down 11% Wednesday, roughly 50% below their record closing high of $153.49 on Jan. 23. Stocks fell broadly during the session, with tech stocks hit particularly hard.
