Is anyone else buying in on the current dip of Vertiv Holding ($VRT (-7,34%) )? In short:
+ solid company that keeps on beating growth estimates
+ expected large growth in the upcoming years due to increased datacenter demand
+ corrected nicely in the past few months, with another ~ 8% off this Friday
+ current price targets are $~135, with current price at ~$95 implicating ~42% potential upside
However, I see several risks:
- there's significant competition in its datacenter business with no clear moat
- part of its expected value is major companies spending billions on rapid AI expansion. If budgets would be reduced, VRT's growth could be reduced
- the company has a significant debt (~2 billion net debt in September 2024), increasing the risks if growth or profitability is reduced
Am I missing any important pros and cons? Who else is invested and why/why not?
