By Emily Dattilo
Shares of Vertiv Holdings were charging higher after the maker of power and cooling equipment unveiled a slate of strong financial forecasts.
Vertiv stock gained 13% to $138.45 in Tuesday trading, on track for a new high, according to Dow Jones Market Data. It was also on pace for its largest daily percentage gain in more than a year.
At its Investor Day on Monday, the company reaffirmed its full-year 2024 guidance. It also offered a 2025 preliminary view that includes adjusted earnings of between $3.50 and $3.60 a share and organic sales growth between 16% and 18%.
Mizuho analysts raised their price target on Vertiv to $145 from $125 and reiterated an Outperform rating, noting how the 2025 company outlook topped consensus estimates for earnings of $3.41 a share and organic sales growth of 16.2%, respectively.
The company also pushed out its longer term projections to 2029 from 2028 and boosted a variety of metrics including organic revenue growth and projected capital to deploy.
"The long-term framework encapsulated higher-than-expected organic growth (mid-teens) and OP [operating] margins," analysts wrote. "It's a reasonable, yet beatable outlook, with a strong '25 view increasing the achievability of the latter years of the CAGR [compound annual growth rate] forecast."
The company also raised its regular annual cash dividend by 50% to 15 cents a share from 10 cents.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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(END) Dow Jones Newswires
November 19, 2024 14:22 ET (19:22 GMT)
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