Oppenheimer Upgrades InterXion, Says It's A 'Prime Takeover Candidate' Over Long-Term

In a report published Thursday, Oppenheimer analyst Timothy Horan upgraded the rating on

from Not Rated to Outperform, with a price target of $32. The analyst believes that the company is a "prime takeover candidate," although a deal seems unlikely to materialize in the short term. The analyst also expects the stock to start trading on fundamentals rather than on takeover speculations, going forward. At the same time, InterXion's fundamentals continue to be strong and the near-term weakness in the stock presents an attractive buying opportunity. "Further, we believe takeover multiples will continue to support the stock, and balanced industry dynamics as well as continued consolidation should help drive fundamental performance and multiple expansion," Horan stated. The analyst believes that InterXion will be acquired in the longer term. In addition, given that Europe usually lags the US in IT adoption by about a couple of years, the former region is likely to be in the initial stages of cloud adoption, which is evidenced by InterXion's revenue.