VRT

Vertiv Holdings LLC

TMT, Event Driven/Special Sit, SPAC


Presented:02/14/2020
Price:$13.00
Cap:$1.12B
Current Price:$107.47
Cap:$40.32B

Presented

Date02/14/2020
Price$13.00
Market Cap$1.12B
Ent Value$0.88B
P/E Ratio113.04x
Book Value$7.89
Div Yield0%
Shares O/S86.25M
Ave Daily Vol1,747,052
Short IntN/A

Current

Price$107.47
Market Cap$40.32B
Vertiv Holdings LLC engages in the design, manufacturing, and servicing of critical digital infrastructure technology that powers, cools, deploys, secures and maintains electronics that process, store and transmit data. It also offers power management products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure. It carries out its operations in the following geographical segments: Americas, Asia Pacific, and EMEA. The company was founded on February 7, 2020 and is headquartered in Columbus, OH.

Publicly traded companies mentioned herein: Eaton Corp (ETN), Goldman Sachs Group Inc (GS), Honeywell International Inc (HON), Schneider Electric SE (SU FP), Vertiv Holdings LLC (VRT)

Highlights

The presenter is long shares of Vertiv Holdings LLC (VRT). On December 10, 2019 VRT, a Platinum Equity portfolio company, announced that it would become a publicly traded company through a merger with GS Acquisition Holdings Corp (GSAH), a SPAC co-sponsored by an affiliate of Goldman Sachs and David Cote, CEO of GSAH and the former chairman/CEO of Honeywell. The transaction was approved by GSAH shareholders on February 6, 2020 and the company began trading on the NYSE on February 10, 2020 under the ticker VRT. Under the stewardship of David Cote, the presenter believes that there is an opportunity for VRT to expand EBITDA margins from 12% to 15.5% by 2021. Management expects EBITDA margins to be 13.4% in 2021, which implies $0.97 - $1.00 of EPS. If applying the same 20x PE multiple afforded VRT’s peers (Schneider Electric and Eaton), the stock would trade at $20.00. Based on the presenter’s expected 2021 EBITDA margins of 15.5%, the company should generate $1.25 in EPS, which implies a potential $25 price target and 100% of upside. 

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