Barclays Maintains an 'Equalweight' on 21Vianet (VNET); Robust Network Demand, Aggressive Capital Deployment Characterizes 3Q
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Price: $7.92 +4.21%
Rating Summary:
16 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
16 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Barclays maintains an 'Equalweight' on 21Vianet (NASDAQ: VNET) price target of $15.00.
Barclays analyst says, "21Vianet's 3Q11 results were strong and ahead of our estimates for both revenue and EBITDA. Revenue strength was primarily driven by growth in managed network services, even as colocation pricing accelerated (3Q MRR up 10.6% QoQ) reconfirming our view that VNET remains relatively immune to China macro concerns. Utilization was up 80bps QoQ at 81.5%, even as aggressive cabinet mix-shift towards self-built capacity continued (83% of 3Q incremental capacity was self-built, vs. 49% in 2Q11). 4Q guidance was above our revenue and EBITDA forecasts. VNET aggressively repurchased stock post its Sep 14th announcement, with ~15% of planned $30MM repurchase (2.7% of float) already completed. Company also boosted its network footprint with a $9.3MM acquisition in October."
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 $9.27 yesterday.
Barclays analyst says, "21Vianet's 3Q11 results were strong and ahead of our estimates for both revenue and EBITDA. Revenue strength was primarily driven by growth in managed network services, even as colocation pricing accelerated (3Q MRR up 10.6% QoQ) reconfirming our view that VNET remains relatively immune to China macro concerns. Utilization was up 80bps QoQ at 81.5%, even as aggressive cabinet mix-shift towards self-built capacity continued (83% of 3Q incremental capacity was self-built, vs. 49% in 2Q11). 4Q guidance was above our revenue and EBITDA forecasts. VNET aggressively repurchased stock post its Sep 14th announcement, with ~15% of planned $30MM repurchase (2.7% of float) already completed. Company also boosted its network footprint with a $9.3MM acquisition in October."
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 $9.27 yesterday.
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