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Real-Time news about Ixeurope (London Stock Exchange): 0 recent articles
|cat: Summary from Charles Stanley note out yesterday:
Share price momentum set to continue
Since we initiated coverage in March, IXEurope's share price has risen 46% and is now within 5% of our initial short term target price. We attribute the rise to an increasing understanding of the fundamental attractions of carrier neutral data centres, which include rising demand for the limited supply of data centre space, leading to higher prices and occupancy levels. In this note we detail further evidence of these trends which holds out the prospect of upgrades to our forecasts for IXEurope as a result of both price increases and the likelihood that during H2 2007 the company will announce the commissioning of Phase II of its London4 data centre. We introduce a 12 month price target of 126p per share, which is subject to further upside from potential upgrades to our forecasts and increasing momentum from, for example, the likely flotation at a premium rating of TelecityRedbus later this year.
No let up in demand for DC space. We have spoken recently to a number of data centre operators in the UK and Europe all of whom report strong growth in demand. The latest estimates from CBRE show that forecast vacancy rates (of both fully fitted and shell & core stock) in London will fall to c3% by 2009 from the current 19%. In Europe as a whole the total take-up of 64,000 m² in 2006 is greater than the current level of fully fitted space, which currently stands at 51,000 m².
Forecast supply continues to be constrained. The limiting factors of sufficient power supply, connectivity and planning permission continue to represent the major barriers to additional supply. Earlier this week Colt Telecom announced that it was commissioning a new 8,500 m² DC site just outside London. This new data centre had been in the pipeline for some time and was included in forecasts for the market as a whole. As such, it does not represent a loosening of supply which we expect to continue to remain constrained, particularly in the London area.
TelecityRedbus' flotation will raise investor awareness. Press reports indicate that TelecityRedbus has appointed advisers for a flotation or trade sale. The mooted £500m price tag represents a c80% premium to IXEurope based on comparisons of revenues and net available data centre space. We expect that a TelecityRedbus flotation process would add momentum to IXEurope's share price.
We maintain our Buy recommendation with a 12 month price target of 126p. Our valuation method is based on discounted EV/EBITDA and price/ earnings ratios of IXEurope's current portfolio at maturity. We have also compared IXEurope to its quoted peers, Equinix and Switch & Data, to which IXEurope trades at a 16% discount on an EV/EBITDA basis. Our 126p price target represents 10x EV/EBITDA and 20x earnings at maturity, discounted back at 20% per annum.|
|togglebrush: Back in the '90's these were often called Data Hotels and Hotel seems a good word because room (space) and occupancy rate seem the key numbers. They have a business model which works and are acquiring others which didn't (possible speculative built after the World Trade Centre, New York disaster?). It appears to be a growing business with potential just like the share price.
Brief extracts from the Annual Review 2006
Page 1 ... last year to this
In 2006 they had 26,400 m2
65% of the total 35,400m2 planned space was contracted as at 31 December 2006
A further 9,000m2 is planned or under construction, of which 2,700m2 was pre-contracted to customers as at 31 December 2006. Furthermore, the group has potential to build and power up more than 30,000m2 of additional datacentre space in London4 and at the Frankfurt2 13-acre campus.
Acquisitions...they have bought cheaply
IXEurope added four IXDatacentres in 2006, three of them as distressed asset purchases and one new-build (London4).|
|togglebrush: I was doodling with some projections based on the Annual Results just now, and they looked quite good and then I saw the price hike!
Back of a Beer Mat projections
Cost of Sales ______£12,537_______£22,537_______£28,035_______£37,593
General Admin _______£8,309 ________£9,869_______£11,722_______£13,923
Depreciation & Am___£3,887_________£5,764________£7,729_______£10,364
These are based on__9,600sqm_____26,400sqm_______35,400sqm____47,468sqm
These give a reasonable PE ratio for 2007 and 2008 based on a 100p share price. Currently 181.3 million shares as opposed to 172.6 in 2006
I could not find any other forecast so I did my own. DYOR
It may explain the price hike ???|
|masurenguy: Slight retracement from the mid 70s over the past 3 weeks. Revenue at £37.3m came in at nearly 20% above interim expectations and 66% ahead of last year. The pretax loss was also higher than expected probably due to higher costs in opening and operating the 4 new centres last year. It is difficult to accurately compare costs from year to year since their expansion complicates the cost structure.
It still looks positive and the share price has more than doubled in the 11 months since their IPO. Recommended by Anthony Hill at FSW today.|
|acornoptical: just noticed a jump in share price any news that i have missed this last week?|
Ix Europe share price data is direct from the London Stock Exchange