Oppenheimer Maintains DFT Rating

Following meetings with DuPont Fabros Technology, Inc.'s

CFO, Mark Wetzel, “we came away encouraged that lease trends and new expansions remain on track, which should drive solid double-digit FFO growth over the next couple of years,” Oppenheimer reports. “Although some additional supply has begun to enter certain markets, DFT's competitors remain largely rational, and we believe that risk of oversupply remains minimal relative to demand growth,” Oppenheimer writes. “Management also noted relatively healthy traffic in space available for lease-up, with largely stable pricing trends and sales cycles. We are modestly adjusting estimates to account for management's commentary. We find valuation attractive at 13x '11E FFO, given the firm's growth profile and balance sheet strength; reiterate Outperform rating.” DuPont Fabros Technology closed Tuesday at $20.92.