UPDATE: Credit Suisse Upgrades 21Vianet Group Following Non-Deal Roadshow

In a report published Tuesday, Credit Suisse analyst Colin McCallum upgraded the rating on

from Neutral to Outperform, and raised the price target from $27.00 to $36.00. In the report, Credit Suisse noted, “On a non-deal roadshow in Singapore and Hong Kong, 21 Vianet management updated investors on the growth of the core web-hosting business, and provided much more granularity on both the Microsoft and IBM cloud computing joint ventures. Importantly, successful monetisation of cloud revenues is proceeding faster than expected, with around US$26 mn of the US$40 mn in cloud revenues guided for FY14 already ‘secure' in pipeline (and leaving the guidance figure looking conservative). Furthermore, the US$40 mn in guidance only related to Microsoft; 21 Vianet expects an additional US$12 mn in net revenues to be delivered by the IBM joint venture on 2H14 launch.” 21Vianet Group closed on Monday at $27.80.