Citi initiated coverage of Switch Inc (NYSE: SWCH) with a Neutral rating and a $20 price target. The firm attributed its Neutral stance to the premium valuation of the company's shares.
Switch offers data center colocation, with a focus on high reliability and power density, served by renewable energy, Citi said. The firm also said the company has built a strong presence in the Las Vegas market, with an above-average return on capital versus its competitors.
Presently, Citi said, Switch has built a strong presence in the Las Vegas market, with an above-average return on capital versus its competitors, and is looking to expand its success to three new U.S. markets as well as through its investment stakes.
"Switch is also in an early stage of ramping demand in its new markets that are more competitive & may be subject to an extended ramp & lower returns than its current footprint," the firm added.
Related Link: Cramer Likes The Data Center Industry But Isn't A Buyer Of Switch
Latest Ratings for SWCH
|Oct 2017||Goldman Sachs||Initiates Coverage On||Neutral|
|Oct 2017||JP Morgan||Initiates Coverage On||Overweight|
|Oct 2017||Credit Suisse||Initiates Coverage On||Outperform|
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