TD Cowen sees refinancing risk for Cyxtera Technologies, downgrades stock

Cyxtera Technologies

20/03/2023 15:10

** Cyxtera Technologies Inc shares  CYXT.O  down 6.8% at
$1.29 after TD Cowen downgrades software firm to "market
perform" from "outperform", cuts PT to $1 from $3
    ** Brokerage sees elevated refinancing risk to fund co's
long-term growth given current capital market conditions 
    ** Co's debt expected to mature in April/May 2024 and since
co has not provided guidance it can lead to no progress with
lenders - TD Cowen
    ** Inability to refinance debt can seriously impede CYXT's
data center business and likely cause co to file for bankruptcy
protection -brokerage 
    ** Five of eight brokerages rate the stock "buy" or higher,
two "hold" and one "sell"; their median PT is $4 - Refinitiv
IBES Data
    ** Up to last close, stock had slumped 33% YTD

 (Reporting by Johann M Cherian in Bengaluru)
 ((johann.mcherian@thomsonreuters.com;))