DuPont Fabros Technology (DFT) Growth Set to Accelerate - Cowen

Yesterday, DuPont Fabros Technology (NYSE: DFT) held its Investor Day in NYC where management provided a detailed overview of its go forward five-year strategic plan. It was attended by Cowen analyst Colby Synesael who believes investor focus can shift back to fundamentals and its attractive valuation. No change to Outperform rating or $42 PT.

DuPont Fabros believes its strategic plans will enable it to grow revenue/FFO at a double digit CAGR from 2016E-2020E versus the ~6% growth this year.

As part of its strategic review, DuPont Fabros evaluated its product offerings and decided to stick with wholesale as opposed to moving up the data center stack given the strong demand and pricing power it is currently seeing. However, it plans on adding more flexible products including those with more density and resiliency options under its new data center design which also will reduce the time to market to add additional phases.

In order to help attract new customers, DuPont Fabros is also going to start offering full service leases opposed to just triple-net leases.

DuPont Fabros plans on expanding into two new markets, including Toronto which is its top priority and it is currently negotiating a land purchase. Construction on the data center is expected to start next year and it expected to come on-line in early 2018.

For an analyst ratings summary and ratings history on DuPont Fabros Technology click here. For more ratings news on DuPont Fabros Technology click here.

Shares of DuPont Fabros Technology closed at $32.88 yesterday.

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