Macquarie Upgrades DuPont Fabros Technology (DFT) to Outperform

Macquarie upgraded DuPont Fabros Technology (NYSE: DFT) from Neutral to Outperform with a price target of $40.00 (from $37.00), calling it a value buy ahead of expansion growth.

Analyst Kevin Smithen commented, "After moving to the sidelines prior to DuPont’s Q4 earnings report churn fiasco we have been patiently waiting for the right re-entry point into our long-term bull thesis. We have remained consistent in our belief that Net Data Centers, much like Yahoo, is an isolated event and that there is a long runway of growth and value creation ahead. Back in 3Q14 we urged mgmt. to publicly disclose more info on their tenant base, and to develop a road map to provide visibility into DFT’s growth strategy and addressable market opportunity. They have already answered the call on the disclosure and new CEO Eldredge plans to present his road map to the board and investors in 2H15. Based on recent leasing momentum (incl. FB), we feel that there are sufficient positive catalysts to solidify a conviction buy outside of pure valuation. We believe that shares have bottomed off of the Net Data Centers news, and that DFT’s potential fundamental upside to guidance is too great to ignore ahead of a much anticipated growth acceleration period. "

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 $31.94 yesterday.

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