Benchmark Company Reiterates Buy Rating, $6 PT on Cincinnati Bell

In a company update published Friday, the Benchmark Company reiterated its Buy rating and $6.00 price target on Cincinnati Bell (NYSE: CBB).

Benchmark noted, “Cincinnati Bell (CBB) is pursuing an IPO of its data center subsidiary, CyrusOne. We think it is likely the initial S-11 filing will be made this Fall with an IPO possibly in 4Q12 or 1Q13. The initial filing could catalyze CBB as it increases the likelihood of an IPO. CyrusOne appears undervalued currently, and with momentum in the stock market for recurring revenue data center businesses with growth, we foresee a successful IPO that unlocks material value for CBB shareholders.”

Cincinnati Bell closed yesterday at $3.85.