UPDATE: Deutsche Bank Initiates Coverage on QTS Realty Trust on More Cautious View

In a report published Tuesday, Deutsche Bank analyst Vin Chao initiated coverage on

with a Hold rating and $23.00 price target. In the report, Deutsche Bank noted, “QTS offers a differentiated way to invest in the outsourced data center market as the only player to offer a combination of wholesale, retail, and cloud/managed service. We believe this forward thinking approach to the outsourcing of data center infrastructure, will better enable QTS to react to the changing demands of the market vs its peers. Net-net, we like QTS's business model from a conceptual perspective, but with a limited operating history as a public entity, higher-than-avg financial risk, and ownership overhangs, we are taking a more cautious view.” QTS Realty Trust closed on Monday at $21.80.