Piper Jaffray Downgrading Terremark Worldwide (TMRK)

Piper Jaffray is downgrading shares of Terremark Worldwide (NASDAQ: TMRK) to Neutral with a $19 price target after the company agreed to be acquired by Verizon (NYSE: VZ).

In the note to clients, Piper Jaffray writes, "Terremark released its fiscal 3Q11 results after the market close on Friday, February 4. Both revenues and adjusted EBITDA were ahead of our estimates. Terremark raised FY11 guidance slightly and issued FY12 guidance well above our estimates. We are raising price target to $19 to reflect the Verizon acquisition price and lowering our rating to Neutral. Please see our PipeReport published February 7 for read-thrus for the rest of the industry."

Shares of TMRK closed at $18.95 on Friday.