Bernstein initiates Csquare stock coverage with outperform rating
Investing.com reports that Bernstein SocGen Group has begun covering Csquare Inc (NYSE:CSQR) with an Outperform rating and a price target of $27.00, indicating a potential 25% increase from the current trading price of $21.52. The firm highlights that Csquare manages 389MW of colocation real estate across key markets, with potential for expansion to 330MW through equipment optimization, potentially reaching 1GW in the next few years.
Analysts expect high-teens annual EBITDA growth driven by re-leasing spreads, increased interconnection opportunities, and margin improvements, surpassing other public data center companies. However, Bernstein notes significant debt at 8.5x estimated EBITDA for Q3 2026, controlled company status, and the absence of a dividend, which may deter some investors.
Despite these risks, Csquare reported strong Q2 2026 results, with revenue up 14.5% year-over-year to $280.4 million, adjusted EBITDA increasing by 21% to $120.3 million, and bookings hitting a record $64.7 million for 13 consecutive quarters of growth, with 60% attributed to AI-related business. Recent coverage from BMO Capital and Morgan Stanley also reflects optimism about Csquare's growth potential, with price targets of $26.00.
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