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Berenberg Downgrades Switch Inc. (SWCH) to Hold

May 24, 2022 5:53 AM EDT
Get Alerts SWCH Hot Sheet
Price: $34.22 -0.09%

Rating Summary:
    3 Buy, 13 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 28 | New: 30
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Berenberg analyst Nate Crossett downgraded Switch Inc. (NYSE: SWCH) from Buy to Hold.

The analyst comments "Downgrading SWCH to Hold from Buy after recent offer. Recently SWCH announced an agreement to be taken private by DigitalBridge Group in an all cash transaction valued at approximately $11bn (or $34.25 per share). Given the implied valuation of the deal (28x 2023E EBITDA) relative to public comparables (20x), we believe it is highly likely that shareholders will approve the deal. We have adjusted our price target to the current deal price and are downgrading our rating to Hold from Buy given the limited upside potential in the stock from current levels. In our view, the deal price of the transaction signals a healthy amount of private capital looking for digital infrastructure assets and we expect investors to now focus on additional M&A targets; we think Radius Global Infrastructure (RADI) could be next."

For an analyst ratings summary and ratings history on Switch Inc. click here. For more ratings news on Switch Inc. click here.

Shares of Switch Inc. closed at $33.37 yesterday.

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