UPDATE: Jefferies Upgrades DuPont Fabros Technology to Buy, Raises PT on Good Risk/Reward

In a report published Monday, Jefferies analyst Omotayo Okusanya upgraded the rating on DuPont Fabros Technology DFT from Hold to Buy, and raised the price target from $27.00 to $32.00. In the report, Okusanya noted, “While pricing headwinds persist in the wholesale data center market, we see solid 22% FFO/sh growth in 2014 from: 1) delivery of ACC7 and SC1 Phase II development projects, 2) accretive bond refinancing, & 3) lease-up of VA3 and NJ1. With DFT trading at a meaningful discount versus its peers, the rewards outweigh the risks, especially as near-term risks are limited. We are upgrading DFT to a BUY and raising our price target to $32.” DuPont Fabros Technology closed on Friday at $26.14.