UPDATE: Morgan Stanley Initiates CyrusOne at Equal-Weight on Relative Valuation

Morgan Stanley initiated coverage on CyrusOne CONE with an Equal-weight rating. Morgan Stanley noted, "CONE is trading within the REIT peer average at 2014E 12.3x EV/EBITDA and 16.9x P/AFFO. Its dividend yield of 2.8% is below the peer group, though there is potential for it to grow faster than the industry average as management refines its payout policy. Leverage of 2.4x is also below peers. We believe a successful execution of its expansion plan will provide upside to our base case of $23; however, at this early stage, the balanced risk and in line valuations drive our EW." CyrusOne closed at $22.67 on Monday.