NEW YORK (TheStreet) -- Shares of QTS Realty Trust (QTS) - Get Report closed down 0.2% to $35.25 on Thursday despite Deutsche Bank's upgrade to a "buy" rating from a "neutral" rating and increased its price target to $39 from $36.
"With QTS closing its first year as a public company on a strong note, we remain impressed by the company's strong operating performance," analysts said.
QTS reported earnings of 54 cents in its fourth quarter of 2014, versus 47 cents per share the year prior. It reported 2014 fiscal year earnings of $1.91 per share.
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QTS posted EBITDA of $29 million for the 2014 fourth quarter, and $100 million for the full year of 2014.
Deutsche Bank analysts forecast earnings of $2.12 per share and $2.55 per share for fiscal years 2015 and 2016.
Analysts anticipate an EBITDA of $119.3 million in 2015 and $143.9 million in 2016.
QTS Realty Trust is an owner, developer and operator of carrier-neutral, multi-tenant data centers.
Separately, TheStreet Ratings team rates QTS REALTY TRUST INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate QTS REALTY TRUST INC (QTS) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for QTS REALTY TRUST INC is rather low; currently it is at 17.50%. Regardless of QTS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, QTS's net profit margin of 5.44% is significantly lower than the industry average.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income increased by 16.5% when compared to the same quarter one year prior, going from $2.71 million to $3.16 million.
- When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, QTS REALTY TRUST INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has improved to $21.71 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.
- QTS REALTY TRUST INC has improved earnings per share by 10.0% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.51 versus $0.23).
- You can view the full analysis from the report here: QTS Ratings Report