Csquare Stock Misprices Growth Potential, Ability to Address Supply-Constrained Market, BofA Securities Says

MT Newswires Live08-10

Csquare (CSQR) stock misprices the company's growth potential and its ability to address an increasingly supply-constrained market, BofA Securities said in a note Monday.

As data center supply in the tier 1 and tier 2 markets is likely to remain constrained by power procurement bottlenecks and rising local opposition, the investment firm said it sees a 2x increase in data center demand over the next five years.

The firm further said that Csquare is not trying to outbuild hyperscalers, but is monetizing scarce, powered, connected urban capacity exactly where artificial intelligence inference is likely to land.

The company is poised to see an acceleration in revenue, adjusted EBITDA and AFFO growth to 15%, 18% and 27%, respectively, over the intermediate term that would support a material multiple expansion, according to the note.

BofA Securities initiated coverage on Csquare stock with a buy rating and a price target of $46.

Price: 21.72, Change: +0.20, Percent Change: +0.93

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