Barclays Starts 21Vianet (VNET) at Equalweight; Lower Risk Path to China Internet Exposure, Strong Growth Priced In

Barclays initiates coverage on 21Vianet (NASDAQ: VNET) with an Equalweight. PT $15.

Barclays analyst says, "While the shares provide an opportunity to gain exposure to rapid China Internet growth without having to "pick winners" among Internet content providers, we believe current valuation (a 5-6x premium on 2012E EBITDA), combined with risk factors, lead to balanced risk/reward...Our $15 target reflects 8.5x 2014E EBITDA, ~1.5-2.0x above our longer-term target multiples for Equinix (Nasdaq: EQIX) and Interxion (Nasdaq: INXN), due to higher potential VNET growth upside."

For more ratings news on 21Vianet click here and for the rating history of 21Vianet click here.

Shares of 21Vianet closed at $13.28 yesterday.

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