Dupont Fabros Technology Inc. Stock Upgraded (DFT) By TheStreet Wire 03/03/11 - 05:28 PM EST
NEW YORK (TheStreet) -- Dupont Fabros Technology (NYSE:DFT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
* The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 238.1% when compared to the same quarter one year prior, rising from -$6.82 million to $9.41 million. * DUPONT FABROS TECHNOLOGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DUPONT FABROS TECHNOLOGY INC increased its bottom line by earning $0.49 versus $0.05 in the prior year. This year, the market expects an improvement in earnings ($0.76 versus $0.49). * Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year. * The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. * The revenue growth came in higher than the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 25.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
DuPont Fabros Technology, Inc., a real estate investment trust (REIT), engages in the ownership, development, operation, management, and lease of data center facilities in the United States. The company has a P/E ratio of 47.4, equal to the average real estate industry P/E ratio and above the S&P 500 P/E ratio of 21.5. Dupont Fabros Technology has a market cap of $1.5 billion and is part of the financial sector and real estate industry. Shares are up 11.7% year to date as of the close of trading on Wednesday.