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UPDATE: Canaccord Genuity Downgrades 21Vianet (VNET) to Hold

November 26, 2014 8:00 AM EST
Get Alerts VNET Hot Sheet
Price: $1.86 --0%

Rating Summary:
    10 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 7 | New: 39
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(Updated - November 26, 2014 11:19 AM EST)

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.



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