UPDATE: Canaccord Genuity Downgrades 21Vianet (VNET) to Hold
Get Alerts VNET Hot Sheet
Rating Summary:
10 Buy, 8 Hold, 0 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 9 | Down: 7 | New: 39
Join SI Premium – FREE
Canaccord Genuity downgraded 21Vianet (NASDAQ: VNET) from Buy to Hold with a price target of $19.00 (from $35.00). The change follows its soft Q3 report and Q4 guidance. Analyst Greg Miller noted core weakness.
"While headline results were roughly in line with consensus and only modestly below our estimates, they were meaningfully bolstered by recent acquisitions. The core hosting services business was significantly weaker than anticipated. Q4/14 guidance is also below both our and consensus expectations for revenue and adjusted EBITDA."
"Importantly, hosting services results were significantly weaker than our expectations. Utilization was 50bps below our estimate while MRR/cab was 3% lower than expected, declining year-over-year due in part to transition to VAT," continued the analyst. "Given weaker-than-expected core results and lackluster guidance – not to mention unresolved fraud allegations – we are lowering estimates and target and downgrading to Hold. "
For an analyst ratings summary and ratings history on 21Vianet click here. For more ratings news on 21Vianet click here.
Shares of 21Vianet closed at $20.76 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wells Fargo Downgrades Nuscale Power (SMR) to Underweight, 'Behind the Eight Ball'
- Barclays Upgrades 3M (MMM) to Overweight, 'Further portfolio and cost structure optimization ahead'
- Raymond James Downgrades Western Gas Partners (WES) to Market Perform
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT Change, DowngradesRelated Entities
Canaccord GenuitySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!