BMO starts Csquare stock at Outperform on data center growth

BMO Capital initiated coverage on Csquare Inc (NYSE:CSQR) with an Outperform rating and a price target of $26.00, citing the company’s exposure to secular data center growth and a capital-efficient path to nearly triple capacity within its existing footprint. The firm identified risks including elevated leverage at 8.2x post-IPO and lower portfolio quality, but believes the current valuation more than discounts these concerns.

Csquare reported impressive Q2 2026 results, with revenue climbing 14.5% year-over-year to $280.4 million and a 21% increase in adjusted EBITDA, reaching $120.3 million, driven by record bookings in AI-related business.

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