Terremark Upgraded At Benchmark Capital (TMRK)
Benchmark Capital is upgrading shares of Terremark Worldwide, Inc. (NASDAQ: TMRK) to Buy from Hold and raising its price target to $9.00 from $8.50 after the stock has fallen since it was downgraded back in June by the research firm.
In a note to clients Benchmark Capital writes, "We expect tremendous growth in Cloud hosting. Terremark’s annualized Cloud hosting revenue was $26 million in FY1Q10, up 18% sequentially. Cloud hosting appears to be moving beyond the experimental stage and becoming an integral part of IT planning. We anticipate Cloud hosting will gain widespread adoption. We are increasing our FY2012 estimates, due largely to traction within the Cloud hosting segment. Our FY2011 estimates remain essentially unchanged. For FY2012 we now project $400 million in revenue, up 15% y/y, leading to $124 million in OIBDA, an increase of 24% y/y. This is up from prior estimates of $391 million and $119 million, respectively."
Shares of Terremark are up 42 cents this morning, to $8.03 in Monday trading.
