UPDATE: Bank of America Upgrades CyrusOne on Growth Outlook, Relative Valuation

In a report published Wednesday, Bank of America analyst Stephen W. Douglas upgraded the rating on

from Neutral to Buy, and reiterated the $23.00 price target. In the report, Bank of America noted, “We are upgrading CONE to Buy based on its growth outlook and relative valuation in a sector where we expect M&A to remain an ongoing theme. Since its IPO on January, 17, 2013, CONE shares have fallen 1% vs. the RMZ (flat), the S&P 500 (up 15%), and its data center REIT peer average (down 3%). Within our coverage, we believe CONE screens as attractive with a '14E AFFO multiple of 13x with 31% projected growth vs. data center peers at 13.5x with 21% projected growth.” CyrusOne closed on Tuesday at $18.59.