Benchmark Company Reiterates Buy Rating, $12 PT on InterNAP Network Services Following Philadelphia Meetings

In a report published Monday, Benchmark Company analyst Daniel L. Kurnos reiterated a Buy rating and $12.00 price target on

. In the report, Benchmark Company noted, “We recently hosted Internap (INAP-Buy, PT $12) in Philadelphia. Our meetings reinforced our conviction in the story and highlighted three key points: 1) INAP should experience accelerating revenue growth and expanding margins beginning in 1Q14; 2) the Company could reach two key inflection points over the next 12-18 months - core datacenter revenues eclipsing 50% of total company revenues and free cash flow after expansion CapEx reaching breakeven; 3) despite recent modest multiple compression in the space, valuation appears compelling at just 6.5x 2014E EV/EBITDA, supported by recent acquisitions at 10-12x.” InterNAP Network Services closed on Friday at $6.98.