UPDATE: Canaccord Genuity Raises Cbeyond's PT

According to a research report published this morning, Canaccord Genuity increases Cbeyond's

PT from $8 to $9. In the report, Canaccord Genuity said, "We continue to rate Cbeyond a HOLD as it attempts to transition its business model from a pure resale CLEC business model to that of a Cloud Computing company – a business in which valuations are far richer than a CLEC could generate today. Despite the Q1/12 results that were better than expected (admittedly draconian), we believe investors should wait for a more complete transition of its business model before rushing back to this once well-loved stock. Although we believe such a significant business model transition is possible, we note that the track record of the industry has not been kind to investors." Cbeyond closed yesterday at $6.69.