UPDATE: Goldman Sachs Initiates Coverage on QTS Realty Trust on Highest Long-Term Growth Rate in Our Coverage

In a report published Monday, Goldman Sachs analyst Andrew Rosivach initiated coverage on

with a Buy rating and $27.00 price target. In the report, Goldman Sachs noted, “QTS completed its IPO on October 9, 2013. We initiate coverage at Buy, with a 12-month price target of $27. Our Buy rating is based on: (1) high expected returns from its development pipeline (re-purposed space rather than greenfield development); and (2) a discounted valuation relative to our coverage universe. QTS has been able to produce a 15% ROIC to date on redevelopment, and its existing footprint (raised floor space can be nearly tripled from current levels within existing facilities) creates a path for QTS to continue.” QTS Realty Trust closed on Friday at $21.43.