UPDATE: Piper Jaffray Reiterates Overweight Rating, Raises PT on 21Vianet Group
In a report published Monday, Piper Jaffray & Co. reiterated its Overweight rating on 21Vianet Group (NASDAQ: VNET), and slightly raised its price target from $15.00 to $16.00.
Piper Jaffray noted, “3Q results were within guidance. Revenues were better than expected, but EBITDA was slightly below our forecast. While the company's partnership with Microsoft should put some pressure on near-term results, we believe it will be long-term accretive...We continue to believe industry dynamics remain attractive for 21Vianet. The company trades at a discount to other datacenter companies in our coverage universe, yet has the highest growth. We think weakness in the stock presents an attractive opportunity for investors. We believe the investments being made now will drive better growth and profitability in 2013.”
21Vianet Group closed on Friday at $9.29.
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