Csquare (CSQR): A fixer-upper in a good neighborhood, initiating Outperform

Research evidence excerpt

10 August 2026

Initiation

Madison Rezaei

US Communications Infrastructure

Csquare, Inc.

Nancy Wu

Rating

Outperform

Price Target

CSQR

27.00 USD

Csquare (CSQR): A fixer-upper in a good neighborhood, initiating

Outperform

Say “Csquare” to anyone who lives in Data Center Land™ and the first response you’ll get is

“Yikes, aren’t those the old Evoque and Cyxtera assets?” Well, we won’t lie, we started there

too… and today are initiating coverage with an Outperform rating and a target price of

$27 (24% upside as of 8/7/26 close).

Yes, the assets are “seasoned”, with an average age of 22 years. Yes, they’ve been in and

out of PE ownership for the better part of a decade. And yes, some of them went through

bankruptcy. But they’re also in some of the best markets in the world, where prices keep

going up, building is extremely challenging, and because the facilities are undermodernized,

they’ve got some pretty attractive capacity unlocks. In other words: great bones and potential

if you can look past the current1970s wallpaper.

Close Date

7 Aug 2026

CSQR Close Price (USD)

21.52

Price Target (USD)

27.00

Upside/(Downside)

25%

52-Week Range

23.50/19.50

SPX

7,757.64

FYE

Dec

Div Yield

NA

Market Cap (USD) (M)

3,497

EV (USD) (M)

9,138

Performance

YTD

1M

6M

Csquare is sitting on 389MW of prime enterprise colo real estate in major markets (which

Absolute (%)

NA

we notoriously love) with a clear line of sight to an incremental 330MW through equipment

SPX (%)

13.3

3.4

11.9

optimization. With additional power allocation, that footprint could become upwards of

Relative (%)

NA

1GW—a 2.7x increase over the next several years. Layer on benefit from re-leasing spreads,

Source: Bloomberg, Bernstein estimates and analysis.

interconnection tailwinds, and basic margin improvement, and we’re looking at high-teens

annual EBITDA growth for the next few years—outpacing that of any other public data center. Price Performance, 1YR

But like most renovation projects, there’s some risk here. CSQR’s leverage is aggressive

(8.5x 3Q26E), execution has to happen, the controlled company status is suboptimal, and

there won’t be a dividend for at least a few more quarters. The company is laser-focused on

…