10:10 AM EDT, 08/04/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Following VRT's Q2 earnings release, we raise our 12-month price target to $165 from $150, valuing shares at 34.8x our 2026 EPS outlook of $4.75 (up from $4.50; 2025 EPS estimate adjusted to $3.82 from $3.60), above VRT's long-term historical average, justified by the rising adoption of AI and investment into data center infrastructure. VRT continued to execute well in the second quarter, contributing to our upgraded earnings outlook for 2025 and 2026. VRT entered yet another key partnership in Q2, collaborating with Oklo to advance power and cooling solutions for data center markets. Since entering into collaborations, VRT has accelerated the rate of new product introductions. Tariff pressures were experienced in Q2 on operating margins (110 bps decline Y/Y), though we see pricing and supply chain optimization/localization proving effective in mitigating impacts. The record backlog provides confidence to our outlook we reiterate our Strong Buy view.