UPDATE: Raymond James Upgrades Cbeyond to Outperform, Names $7.50 PT on Attractive Risk/Reward

In a report published Tuesday, Raymond James analyst Frank G. Louthan IV upgraded the rating on

from Market Perform to Outperform, and named a $7.50 price target. In the report, Raymond James noted, “We are upgrading our rating on Cbeyond to Outperform from Market Perform. We fully recognize we could be very early on this call, but believe the recent lows offer an attractive risk/reward as the competitive and economic environment are not materially different to explain the recent declines (down 11% over the past 10 days); thus the opportunity for long term, value investors. The company is in the middle of a complex transition from its legacy business to one anchored by dedicated company owned fiber with a higher mix of IT and cloud based products which we believe is the appropriate transition. Additionally, we do not see material changes in the competitive landscape that have not already existed that would warrant the recent share price decline, thus we are upgrading to Outperform from Market Perform.” Cbeyond closed on Monday at $5.95.