[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  DonCorleone77 [@CorleoneDon77](/creator/twitter/CorleoneDon77) on x 5271 followers Created: 2025-07-18 01:10:46 UTC $VRT Attached is page X of a 14-page Bank of America analyst report on VRT issued today entitled: "2Q25 preview: front and (data) center" Bank of America has a 'Buy' rating on VRT with a $XXX price target. Bank of America's summary statement regarding VRT in the report includes the following: "2Q25 preview: forecast flat y/y orders growth at $2.7bn: After reporting XX% y/y orders growth in 1Q25, VRT shares rallied. For 2Q, we forecast $2.7bn in orders, (3)% q/q, but flat y/y on an organic constant currency basis. This would represent a 1.14x book-to-bill, consistent with mid-teens revenue growth. We forecast XX% y/y organic revenue growth and a XXXX% adjusted operating margin, driving our $XXXX adj. EPS (above $XXXX consensus). We raise our price objective by $XX to $150, based on 23x (previously 21x) EV/EBITDA 2026E. Our target multiple is at a premium to the 18x peer average on 2025E, given above-peer earnings growth. Reiterate Buy rating. Lost in the Amazon? Not so much: On 7/10, VRT shares fell on news that Amazon Web Services (AWS) had designed proprietary cooling systems. AWS will not manufacture or service this equipment. Cloud service providers, such as AWS, have traditionally used proprietary electrical and thermal equipment that is manufactured to their specifications. We view this announcement as no different from prior business practices. Tracking the money & the megawatts: BofA analysts project capex by cloud service providers (Microsoft, Amazon, Google, Meta, and Oracle) to rise XX% y/y to $386bn in 2025. This is XX% higher than the pre-1Q results forecast. For more details, see their 5/9/25 note. Colocation firms raised at least ~$29bn of debt and equity in 2Q25. In 2Q, US data centers worth $24bn entered planning and ~$3bn started construction. US data center construction spending rose XX% y/y to a $37bn annualized pace per Census data. -- Price Objective Basis: We base our $XXX price objective on an 23x EV/EBITDA of our 2026 estimates. Our target multiple is at a premium to the 18x peer average on 2025E. We argue a premium is warranted given above-peers earnings growth. -- Downside risks to our price objective are: 1) declines in company-owned data center spending, 2) inability to execute on capacity expansion plans, 3) newer entrants in liquid cooling offering gaining traction, and 4) reductions in data center capex by cloud providers." (Page X is not available here as X does not allow me to post pages from reports on this platform) XXX engagements  **Related Topics** [$27bn](/topic/$27bn) [americas](/topic/americas) [data center](/topic/data-center) [united states](/topic/united-states) [bank of](/topic/bank-of) [$vrt](/topic/$vrt) [stocks industrials](/topic/stocks-industrials) [bank of america](/topic/bank-of-america) [Post Link](https://x.com/CorleoneDon77/status/1946014749113602361)
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DonCorleone77 @CorleoneDon77 on x 5271 followers
Created: 2025-07-18 01:10:46 UTC
$VRT
Attached is page X of a 14-page Bank of America analyst report on VRT issued today entitled:
"2Q25 preview: front and (data) center"
Bank of America has a 'Buy' rating on VRT with a $XXX price target.
Bank of America's summary statement regarding VRT in the report includes the following:
"2Q25 preview: forecast flat y/y orders growth at $2.7bn:
After reporting XX% y/y orders growth in 1Q25, VRT shares rallied. For 2Q, we forecast $2.7bn in orders, (3)% q/q, but flat y/y on an organic constant currency basis. This would represent a 1.14x book-to-bill, consistent with mid-teens revenue growth. We forecast XX% y/y organic revenue growth and a XXXX% adjusted operating margin, driving our $XXXX adj. EPS (above $XXXX consensus).
We raise our price objective by $XX to $150, based on 23x (previously 21x) EV/EBITDA 2026E. Our target multiple is at a premium to the 18x peer average on 2025E, given above-peer earnings growth. Reiterate Buy rating.
Lost in the Amazon? Not so much:
On 7/10, VRT shares fell on news that Amazon Web Services (AWS) had designed proprietary cooling systems. AWS will not manufacture or service this equipment. Cloud service providers, such as AWS, have traditionally used proprietary electrical and thermal equipment that is manufactured to their specifications. We view this announcement as no different from prior business practices.
Tracking the money & the megawatts:
BofA analysts project capex by cloud service providers (Microsoft, Amazon, Google, Meta, and Oracle) to rise XX% y/y to $386bn in 2025. This is XX% higher than the pre-1Q results forecast. For more details, see their 5/9/25 note. Colocation firms raised at least ~$29bn of debt and equity in 2Q25. In 2Q, US data centers worth $24bn entered planning and ~$3bn started construction. US data center construction spending rose XX% y/y to a $37bn annualized pace per Census data.
-- Price Objective Basis:
We base our $XXX price objective on an 23x EV/EBITDA of our 2026 estimates. Our target multiple is at a premium to the 18x peer average on 2025E. We argue a premium is warranted given above-peers earnings growth.
-- Downside risks to our price objective are:
- declines in company-owned data center spending,
- inability to execute on capacity expansion plans,
- newer entrants in liquid cooling offering gaining traction, and
- reductions in data center capex by cloud providers."
(Page X is not available here as X does not allow me to post pages from reports on this platform)
XXX engagements
Related Topics $27bn americas data center united states bank of $vrt stocks industrials bank of america