UPDATE: UBS Downgrades DuPont Fabros Technology (DFT) to Sell

UBS downgraded DuPont Fabros Technology (NYSE: DFT) from Neutral to Sell with a price target of $29. Analyst Ross T. Nussbaum pointed to its earnings miss, no M&A, a cloudier strategy, and a premium to NAV.

"We are downgrading shares of DuPont Fabros (DFT) to Sell from Neutral given the combination of a reduced earnings outlook, elimination of M&A potential given the naming of a new CEO, added uncertainty around the strategic outlook under new leadership, and a premium valuation to our 'stabilized' NAV estimate," said Nussbaum.

"While the stock took a hit on Thursday following the Q4 release, we see additional downside potential. At the current level, the stock is trading at a premium to where we see the NAV assuming DFT resolves the Net Data Centers tenant issue and pending Yahoo vacancies. Our revised $29 price target is based on a 10% discount to our 'stabilized' 4Q16 forward NAV of $32," he added.

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 $34.00 yesterday.

You May Also Be Interested In

• Oppenheimer Downgrades Legend Biotech Corp. (LEGN) to Perform, 'CEO/Partnership/Competition Overhangs to Cap Upside'
• UBS Starts Nuvama Wealth Management (NUVAMA:IN) at Buy
• Lumexa Imaging Holdings, Inc. (LMRI) Reports In-Line Q2 EPS; Offers Guidance