UPDATE: Bank of America Downgrades CoreSite Realty Corp. on Valuation

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

from Buy to Neutral, but reiterated the $38.00 price target. In the report, Bank of America noted, “We are downgrading COR to Neutral from Buy primarily based on valuation relative to its history and peers. While we expect the company to maintain premium growth to the sector, we believe there are better values in the data center sector given COR's recent relative outperformance. COR shares have returned 21% year-to-date, significantly outperforming its data center peers (down 5% on average) and the RMZ index (up 3%). COR currently trades at a '14E AFFO multiple of 16.3x with 22% projected growth vs. the data center peer average of 13.5x with 21% average growth. COR currently trades near its widest valuation spread (3x) relative to peers on AFFO dating back to its IPO in 2010.” CoreSite Realty Corp. closed on Tuesday at $33.41.