Benchmark Raises Price Target on Savvis to $40 (SVVS)

Benchmark is out with its report today on SAVVIS

, raising its PT to $40 and reiterating Buy. In a note to clients, Benchmark writes, "Last night, Verizon announced a takeover of Terremark for $19 per share, or almost 14x FY12 EBITDA. Savvis is the closest public comparable to Terremark and, in our view, is thus a takeover candidate as well. The Terremark transaction, at a 35% premium to yesterday's close, sets a new valuation parameter. We raise our Savvis price target to $40 per share and reiterate our Buy rating." At the time of posting, shares of SVVS were trading at $31.20, up 17.43% from Thursday's close.