UPDATE: Morgan Stanley Upgrades CyrusOne on Solid 1Q13 Results

In a report published on Tuesday, Morgan Stanley analyst Simon Flannery upgraded CyrusOne CONE from Equal-Weight to Overweight and announced a $25 PT for the company.

In the report, Morgan Stanley commented that, "2013 guidance suggests continued growth of 20% Y/Y. Over the past two quarters, CONE has seen good leasing trends, with 72k colocation square feet newly under contract. 1Q13's 31k newly leased colocation square feet (CSF) is up 2x Y/Y. Much of these bookings have yet to convert over to revenues and should provide support for future growth in 2013. Management is bullish on CONE's demand, as the upcoming pipeline is their strongest ever and the new Phoenix facility is already 40% under contract. Recent insider buying of the stock reinforces this sentiment. Despite the ongoing sales force hiring and additional public costs, margins are higher, perhaps helped by strong lease-ups."

CyrusOne closed on Friday at $21.90