In a report published Monday, Morgan Stanley analyst Simon Flannery reiterated an Overweight rating on CyrusOne (NASDAQ: CONE), but removed the $25.00 price target.
In the report, Morgan Stanley noted, “Cincinnati Bell's (CBB) disposal of 36% (assuming 16m shares) of their stake in CyrusOne (CONE) clears the air, some five months after the IPO lock-up expired. For CBB, net leverage (2014E) drops from 5.9x at 1Q14 to 4.95x, with the opportunity to use the $356M plus wireless proceeds to restructure the balance sheet. Leverage net of the value of the remaining CONE stake, drops from 3.5x to 3.2x helped by the CONE stock price rally. For CONE, the public float jumps some 77% to 37M shares or about 56.3% of total shares outstanding, while CBB has committed to a 90-day lockup on its remaining shares.”
CyrusOne closed on Friday at $24.10.
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