JPMorgan Favors Vertiv (VRT) Holdings as Top Growth Pick in Q4 Sector Preview

Vertiv Holdings Co. (NYSE:VRT) is one of the best US stocks to buy and hold in 2026. On January 16, JPMorgan analyst Stephen Tusa lowered its price target on Vertiv to $225 from $230 while keeping an Overweight rating. In its Q4 earnings preview for the electrical equipment and multi-industry sector, JPMorgan revised its stock ratings and price targets. The firm expressed a strong preference for growth-oriented companies both leading into and following the quarterly reports.

A day before this rating, RBC Capital increased its price target for Vertiv to $200 from $196 while maintaining an Outperform rating ahead of Q4 2025 earnings season for the multi-industry sector. The firm expressed a constructive outlook heading into 2026, citing strong multi-year secular drivers, large-scale megaprojects, and continued momentum in the data center market. The firm also noted that the sector’s relative valuation remains attractive.

However, RBC highlighted a two-speed economy within the industry: while data center growth remains robust at mid-teen percentages or higher, most other industrial segments are struggling with sluggish and uneven demand, growing at low-single digits at best. Despite these broader industrial headwinds, the firm remains bullish on Vertiv due to long-term tailwinds in electrification, reshoring, energy storage, and the ongoing energy transition.

Vertiv Holdings Co. (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.

While we acknowledge the potential of VRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.