- Mizuho Analyst Brett Linzey reiterated a Neutral rating on shares of Vertiv Holdings Co VRT with a target price of $10.00.
- The company announced that CEO Rob Johnson will step down for health reasons effective December 31, 2022.
- According to the analyst, his successor Giordano Albertazzi will focus on continuing to implement the current strategies.
- Linzey said that while Vertiv reiterated its Q3 guidance, it expects results at the lower end of the range, mainly due to headwinds in FX markets.
- Although it is FY23 Operating Profit Forecast From $730 to $750 million, the analyst says is plausible as the price finally catches up and operational issues are sorted out, setting a high bar for next year against a backdrop of slowing global development.
- As potential risks, Linzey cites a slowdown in hyperscale data center spending, a greater slowdown in Asia Pacific, which accounts for 25% of the portfolio, and ongoing supply issues that limit its ability to serve customers and convert orders.
- Lower business confidence could also support lower investment activity and flare-ups of product shortages could hurt new product competitiveness, the analyst added.
- Price promotion: VRT shares are trading up 5.64% at $11.89 on the latest check Tuesday.
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