Wells Fargo Starts Csquare Inc (CSQR) at Overweight

Wells Fargo analyst Eric Luebchow initiates coverage on Csquare Inc (NYSE: CSQR) with a Overweight rating and a price target of $25.00.

The analyst comments "We initiate CSQR with Overweight and $25 PT. We expect CSQR can outpace peer growth on EBITDA and AFFO/sh, with longer term upside from the brownfield re-development opportunity, more than offsetting risks from higher leverage + Brookfield ownership. Initiate with $25 PT. CSQR trading at 6-7x discount to EQIX/DLR on '27 EBITDA / AFFO. We are forecasting growth CAGR of +13% for revs, +15% for EBITDA and +26% for AFFO/ sh from 2027-2029 (+100-200 EBITDA growth premium and >100% AFFO growth premium to peers). While leverage + Brookfield stake could merit a ~3-5x discount, CSQR is not getting credit for its premium growth or brownfield optionality. Our DCF and multiple-based PT is 15x '27 EV/EBITDA and 18x P/AFFO."

For an analyst ratings summary and ratings history on Csquare Inc click here. For more ratings news on Csquare Inc click here.

Shares of Csquare Inc closed at $21.52 yesterday.

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