UPDATE: UBS Starts Cyxtera Technologies (CYXT) at Neutral

UBS analyst John Hodulik initiates coverage on Cyxtera Technologies (NASDAQ: CYXT) with a Neutral rating and a price target of $14.00.

The analyst comments "We initiate coverage of Cyxtera (CYXT) with a Neutral rating and $14 PT. We believe the company stands to benefit from secular trends in the third party data center industry, including growing demand for cloud connectivity, enterprise outsourcing and the digitalization of the economy. Cyxtera has made strides in evolving from its CenturyLink origins to a carrier-neutral interconnection platform, though this legacy still leaves it with a largely leased asset base of older facilities. The stock trades at ~16x forward EBITDA, a premium to prior telco data center M&A at 12-13x but a discount to data center REIT peers at ~26x. We see a balanced risk-reward at the current valuation given lack of REIT status, low asset ownership and execution risk on the lease-up of vacant space."

For an analyst ratings summary and ratings history on Cyxtera Technologies click here. For more ratings news on Cyxtera Technologies click here.

Shares of Cyxtera Technologies closed at $12.61 yesterday.

You May Also Be Interested In

• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• UBS Reiterates Buy Rating on Hilton Worldwide (HLT)