By David Gross
Wall Street loves vague, MBA-speak, and Jefferies continued that tradition yesterday initiating coverage on DLR with a price target of $67, or about 30% higher than the stock's current level in the low 50s.
In its research note, Jefferies stated that "DLR's dominant market position in the wholesale data center space gives it a major competitive advantage vs peers in regards to taking full advantage of strong fundamentals in the datacenter real estate market, which is poised to continue to experience positive demand/supply fundamentals for the next five years."
So here's the edge they have - they've figured out that DLR has high market share. Amazing insight. Moreover, they've determined that demand/supply conditions will be strong for the next five years. No wait they didn't say that, they said it would be "positive". Either way, I doubt that they have driven out this way in Northern Virginia, where there are cranes all over the place preparing for a new wave of data center clients.