All Eyes on Interxion Q4 Earnings This Week

Mar.21.11 | About: InterXion Holding (INXN)

Interxion (NYSE:INXN) will report Q4 2010 results Wednesday, March 23. The company will host a conference call on the same day at 8.30 a.m. ET.

Analysts have just started covering the company, which recently priced its IPO at $13.00 per share, and started trading on the NASDAQ market on January 28.

All companies that started coverage expressed positive comments on the company's future prospects – here is a brief summary of their opinions:

  • Piper Jaffray initiated coverage with an Overweight rating, as it believes the company should continue to see strong growth, improving margins and high returns on capital.
  • Bank of America Merrill Lynch set a Buy rating and a $17.00 price target on the stock.
  • Barclays Capital has an Overweight rating and an $18.00 price target.
  • Oppenheimer initiated coverage with an Outperform rating on the stock.
  • Citigroup set a Buy rating and a $17.00 price target.

Below is a chart with Interxion’s latest quarterly revenues – it will be interesting to check if the company will be able to sustain its Q/Q growth, which was in excess of 8% in Q3:

The company enjoyed steady growth in the last few years, and is a market leader in the European network neutral data center market.

The European market for colocation is very healthy at the moment, and market analysts forecast a compound annual growth rate of about 20% for the next few years.

So far, Interxion shares have traded in a range between $13 and $15.30.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in INXN over the next 72 hours.