The Benchmark Company Reiterates Buy Rating on Savvis Inc. (SVVS)

The Benchmark Company is out with a research report this morning, where it reiterates its Buy rating on Savvis Inc. SVVS; it has a $40.00 price target on the stock.

The BC analysts cited the company's recent quarterly earnings results, which were better than expectations. Growth in the strategic managed and cloud hosting segment was “solid,” according to the analysts.

As for valuation, the analysts remarked, “Savvis is trading at 9x 2011E EBITDA with peers averaging 11x. Consolidation has driven multiples higher, and Savvis is a consolidation candidate. Based on the strategic nature of Savvis services and its double-digit EBITDA growth, we think our $40 per share price target, at 11x EBITDA, is achievable.”