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Vertiv's Strong Product Portfolio Will Trump Its Temporary Pricing Weakness

Apr. 01, 2022 5:55 AM ETVertiv Holdings Co (VRT)EMR30 Comments
Oyat profile picture


  • Vertiv is a leading critical digital infrastructure provider on a global scale with complete solutions and leading technologies few competitors can match.
  • Unfortunately, Vertiv failed to leverage its strong industry positioning in 2021 as cost inflation surpassed weak pricing efforts to crush margins.
  • Vertiv has learned its pricing lesson, and backed by its strong product offering, is already pushing through price increases to return to attractive profitability levels.
  • Ultimately, Vertiv’s strong industry positioning makes its stock a buy after a precipitous drop due largely to temporary pricing issues in 2021.

Global Connection Lines - Global Business, Data Exchange, Travel Routes - Multi Colored

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Vertiv (NYSE:VRT) continues to ride the tailwinds of a digitizing global economy. Networks are becoming more distributed and complex as data usage accelerates, and the result is secular growth for leading solutions providers like Vertiv. A quick


Vertiv's end markets. (Vertiv Holdings Co 2021 Q4 - Results - Earnings Call Presentation)


Vertiv's 2022 financial guidance. (Vertiv Holdings Co 2021 Q4 - Results - Earnings Call Presentation)

Vertiv peer group.

Vertiv peer group. (Refinitiv Eikon)

This article was written by

Oyat profile picture
Oyat (www.oyat.com) is a Swiss-based family office focused on managing our own capital, as well as helping other families and individuals meet their financial goals.Our principal goal is the long-term preservation and appreciation of capital in real terms. We are active across asset classes, including private and public equities, fixed income securities, real estate, precious metals, as well as alternative investments. Our background and specialization is in global equities. Our investment process focuses on owning competitively-advantaged companies at reasonable prices.We also like to engage with the Seeking Alpha community to hear other viewpoints and share our opinions.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VRT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article should not be considered as investment advice. While we hope you find this article informative, please do your own research - or speak to a financial adviser - before making any investment decisions.

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