EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
Filters

Fortnightly Publication Highlighting Latest Insights From IRF Providers

Company Research

Vertiv (VRT)

Industrials

Hedgeye

Given his recent supply chain checks and conversations with industry players, Felix Wang believes the company’s liquid cooling backlog and revenue expectations are too high. While supply bottlenecks are improving, he is particularly worried about some of the new liquid cooling technology out there. As a result, VRT's price-cost tailwinds of >$65m for FY24 may become harder to achieve. Felix also argues VRT's relationship with Nvidia is not really a game-changer and tracking new data centre construction he notes the pace has slowed in 2Q24. The stock looks very expensive at 34x FY25 P/E and 23x EV/EBITDA. While the long-term picture of liquid cooling is constructive for data centres, there is uncertainty on when / how it will play out. 35% downside.

Edition: 191

- 26 July, 2024