21Vianet pares pre-market losses, Pacific Crest downgrades on cabinet delays

|About: 21Vianet Group (VNET)|By:, SA News Editor

Shares of 21Vianet (VNET -8.5%) are paring losses after having been down as much as 17.8% pre-market following Q3 results (I, II), but the stock catches a downgrade from Pacific Crest to Perform from Outperform.

The firm is concerned that VNET's roll out of self-built cabinets is progressing more slowly than expected.

On the conference call, the company said it added 1,172 self-built cabinets in Q3, bringing the total to 8,576, or 64% of total cabinets under management. However, the company was aiming to deploy 2K cabinets during the quarter and 5K in Q4, a timeline that appears to have been pushed back.