EQIX - CyrusOne likely next M&A target in datacenter REIT space after QTS Realty analyst says

Morsa Images/DigitalVision via Getty Images CyrusOne (CONE) is at the top of potential takeout targets in the datacenter REIT space after Blackstone (BX) agreed to buy QTS Reality (QTS) in a $10B deal yesterday, according to Wells Fargo. Other possible candidates include CoreSite Realty (COR) and Switch Inc. (SWCH), Wells Fargo analyst Eric Luebchow wrote in a note. CyrusOne rose 1.4% in premarket trading after gaining 5.5% yesterday. CyrusOne is the most logical next target as it has the most exposure to "long-duration hyperscale" contacts, it already received takeover interest in 2019 from several infrastructure funds and it trades at a "material discount" to its REIT peers, according to Luebchow. CyrusOne could see $90 in a takeout based on a ~25x NTM multiple. Last month, activist Jana Partners reported a new stake in CyrusOne. While some other potential buyers may look at QTS Realty, Luebchow doesn't expect a higher offer as the price for QTS

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CyrusOne likely next M&A target in datacenter REIT space after QTS Realty, analyst says