- Shares of Cyxtera ( NASDAQ: CYXT ) rose over 7% pre-market after Citi upgraded the stock from neutral to buy, citing the wireline telecommunications company's "forward operating progress" and a recent pullback in the stock.
- Price target remained unchanged at $13.
- In assigning a buy rating, Citi analyst Michael Rollins wrote that the rating is "based on the company's prospects to sustain mid-single digit core revenue growth for at least the next 18-months; improve funding for development as well as possible acquisitions; and retain positive longer-term strategic optionality."
- "CYXT shares are down >36% since reporting its 2Q22 earnings, which could relate to its S-3 shelf registration for shares covering 73% of shares outstanding; unfavorable article from Zerohedge (16 Aug 2022); and rising likelihood for Cyxtera to remain a stand-alone entity," Rollins added.
- The company reported its Q2 earnings on Aug. 11 that missed Wall Street estimates .
- SA Quant system rates CYXT as strong sell
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Cyxtera stock rises as Citi upgrades to buy on forward operating progress