Switch Inc Slides Following Wells Fargo Downgrade
By Sam Boughedda
Investing.com -- Switch Inc (NYSE:SWCH) was downgraded to Equal Weight from Overweight at Wells Fargo (NYSE:WFC) Friday, resulting in the stock trading around 3% lower.
Switch is a Las Vegas, Nevada-based company that develops and operates data center facilities.
Wells Fargo analyst Eric Luebchow told investors in a note that he views an acquisition of Switch as a reasonable outcome to its strategic exploration process.
The analyst, who increased the price target to $31 from $28, said he struggles to see an acquisition priced at above the $32 to $34 per share range.
However, if a deal falls through, he sees a potential 10% to 15% downside or more, with the risk/reward becoming less attractive.
Switch Inc shares currently trade around the $29.13 mark. However, they are up 2.3% in 2022.
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