Barclays Maintains an 'Equalweight' on 21Vianet (VNET); Operations on Track, Share Repurchase, Insulated from a China Slowdown
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Price: $6.65 -2.21%
Rating Summary:
16 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
16 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Equalweight' on 21Vianet (NASDAQ: VNET) price target of $15.00.
Barclays analyst says, "We believe 21Vianet's operations and expansion plans remain on track even as concerns around a potential slowdown in China come in focus. We expect the recent $30MM (17% of float at current share price) share repurchase announcement to provide downside support to the stock, while remaining confident that company's expansion plans will not be impacted given the firm's strong cash position (~$260MM in 2Q11 cash). We are raising our revenue and capex estimates to reflect the continued strength in data center demand in China, and our expectation is that the cabinet mix-shift will continue to tilt towards leased capacity through the remainder of 2H11 as demand continues to exceed self-built capacity growth."
3Q11E Forecast: 1) Revenues: Total revenues RMB 252MM - Hosting services RMB 163MM, Managed network services RMB 89MM. Total revenue guidance of RMB 246-250MM; 2) Adjusted EBITDA: RMB 52MM vs. guidance of RMB 50-52MM. GAAP EPS $0.05.
For more ratings news on 21Vianet click here and for the rating history of 21Vianet click here.
Shares of 21Vianet closed at $10.49 yesterday.
Barclays analyst says, "We believe 21Vianet's operations and expansion plans remain on track even as concerns around a potential slowdown in China come in focus. We expect the recent $30MM (17% of float at current share price) share repurchase announcement to provide downside support to the stock, while remaining confident that company's expansion plans will not be impacted given the firm's strong cash position (~$260MM in 2Q11 cash). We are raising our revenue and capex estimates to reflect the continued strength in data center demand in China, and our expectation is that the cabinet mix-shift will continue to tilt towards leased capacity through the remainder of 2H11 as demand continues to exceed self-built capacity growth."
3Q11E Forecast: 1) Revenues: Total revenues RMB 252MM - Hosting services RMB 163MM, Managed network services RMB 89MM. Total revenue guidance of RMB 246-250MM; 2) Adjusted EBITDA: RMB 52MM vs. guidance of RMB 50-52MM. GAAP EPS $0.05.
For more ratings news on 21Vianet click here and for the rating history of 21Vianet click here.
Shares of 21Vianet closed at $10.49 yesterday.
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