Piper Jaffray Maintains Overweight on 21Vianet Group

Piper Jaffray is out with its report today on 21Vianet Group (NASDAQ: VNET), maintaining Overweight.

In a note to clients, Piper Jaffray writes, "21ViaNet reported strong first quarter results after the market close. The company handily beat our revenue and adjusted EBITDA estimates, while also posting solid operating metrics. Management provided 2Q11 guidance that is above our current estimates. We rate 21ViaNet Overweight with a $14 target price. Our target price is based on a 5-year DCF using a 13% NT WACC, a 9% terminal WACC and a 3.5% growth rate. Our target works out to 14.3x our 2012 adjusted EBITDA estimate."

At the time of posting, shares of VNET were trading pre-market at $12.50, up 5.49% from Wednesday's close.