UPDATE: Cowen Starts CyrusOne (CONE) at Outperform

Cowen initiated coverage on CyrusOne (NASDAQ: CONE) with an Outperform rating and a price target of $27.00.

"While a likely secondary-offering by its largest shareholder may limit near-term upside until completed, it has in our view created a compelling entry point. We expect its differentiated model to support double-digit revenue and FFO growth for the foreseeable future," said analyst Colby Synesael.

"CyrusOne trades at 14.0x 2014E FFO vs. the comp at 13.0x. We believe CyrusOne should trade at a premium based on its differentiated business model and the
likelihood it will be able to sustain solid double-digit growth. Using a 15.0x EBITDA exit multiple and a 10.9% WACC, our DCF valuation implies the stock is worth $27," he added.

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

Shares of CyrusOne closed at $21.83 yesterday.

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