Citi Comments on CBeyond After Second Quarter Results

Citi has published a research report on Cbeyond Inc CBEY noting 2Q results are as expected at the communications and information technology company. In the report, Citi wrote, "We see several positives emerging from 2Q results: 1) EOC strategy is tracking to convert >25% of subscribers by early-2012 and showing early-signs for future cost savings; 2) the cloud segment is providing a positive contribution to revenue growth with 12% seq. growth; & 3) sales productivity should rebound after increasing and stabilizing sales force headcount for the 2H/11." Citi rated Cbeyond a Speculative Hold with a price target of $15.00. Cbeyond closed Wednesday at $10.76.