Analyst Note
| Matthew Dolgin, CFA |There were encouraging signs in CoreSite’s fourth-quarter report along with decent financial results, although they came in slightly below FactSet consensus estimates. However, even though CoreSite is the first data center firm we cover to report fourth-quarter results, it’s clear from recent performance that despite CoreSite’s very network-dense property portfolio, the firm is not keeping up with competitors that have global footprints, most notably Equinix. We don’t expect a material change to our $108 fair value estimate for CoreSite, and we currently see all the data center firms under our coverage as overvalued to various degrees, but we think others offer better long-term prospects on an industrywide pullback.