Texas-based real estate investment trust (REIT) CyrusOne (CONE) is exploring sale options after facing renewed pressure from investors to address its heavy management turnover and slow financial performance, a report published by Reuters stated.
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Shares of the company rose nearly 7% on Tuesday but slipped around 1% in extended trade to close at $76.85. CyrusOne is working with Morgan Stanley (MS) to review its strategic alternatives.
The company provides data center facilities and has around 1,000 customers including enterprises, network operators, cloud providers and supporting service providers. It runs over 50 data centers across the world. (See CyrusOne stock chart on TipRanks)
Following the announcement of the news, Stifel Nicolaus analyst Erik Rasmussen maintained a Buy rating on CyrusOne with a price target of $85 (9.6% upside potential).
The analyst said, “Data centers within the context of digital infrastructure are a highly sought-after investment category and CyrusOne is an attractive asset.”
Overall, the stock has a Moderate Buy consensus rating based on 7 Buys and 4 Holds. The average CyrusOne price target of $80.73 implies 4.1% upside potential. Shares have gained 12.5% over the past six months.
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