- Data-center services firm 21Vianet Group (NASDAQ:VNET) is up 7.4% premarket on an upgrade to Overweight at Morgan Stanley, which calls it the top pick in China Internet infrastructure.
- Comparable revenue growth will flip from flat or declining to double-digit growth in 2018, says analyst Yang Liu, thanks to 21Vianet getting out of its unprofitable Managed Network Services businesses.
- The company's EV/EBITDA looks good compared to peers in the U.S. and China, the firm says.
- A raised price target of $9.50 (from $6.30) implies 63.5% upside in shares.