SHORT VERTIV HOLDINGS (VRT); 33% DOWNSIDE

Our Global Technology team is hosting a call on their new Best Idea Short Vertiv Holdings (VRT) on Wednesday, July 17th at 2:00 PM ET to discuss why this company is set to cool off.

Click here to get access.

CALL INVITE -> Best Idea Short VRT; Cooling Off - 01.08.2020 bear in a box cartoon

Our presentation will focus on why liquid cooling backlog and revenue expectations are too high at the moment, given our recent supply chain checks and chats with various industry players.  While almost all the attention for Vertiv is on liquid cooling demand and supply, Vertiv's non-AI segments aren't growing much, and that portion still accounts for 2/3 of VRT's sales.  As a result, VRT's growth is capped to some extent.

Vertiv is very expensive at 34x FY 2025 P/E and 23x FY 2025 EV/EBITDA.  They need liquid cooling fever to continue.  While the long-term picture of liquid cooling is constructive for data centers, there is uncertainty on when/how it will play out.  In the meantime, Vertiv expectations are too high.  We see fair value 33% lower.

We invite you to join us for this call.