UPDATE: Stifel Nicolaus Initiates Buy, $16 on 21Vianet Group

Stifel Nicolaus initiates a Buy rating and $16 price target on 21Vianet Group

as the company provides an attractive play on China's growth. Stifel Nicolaus says, "VNET is a leading provider of carrier neutral Internet infrastructure services in China, which we believe makes it an attractive investment play on overall Internet growth in China. We believe VNET is positioned to sustain attractive growth for the next several years because of: (1) attractive secular growth of the Internet; (2) company specific drivers related to an acceleration in data center expansion efforts; and (3) the potential emergence of other sources of growth around cloud and mobile." VNET closed at $11.40 a share yesterday.