Data centre operator Telecity's full-year results were as 'solid as a rock', according to Jefferies, which retained its 'buy' rating and 1,020p target price for the stock on Wednesday morning.

"Telecity's FY12 results confirm a strong finish to the fiscal year, with the company delivering numbers in-line to slightly ahead of market expectations," the broker said in a research report.

Full-year revenues came in 18% ahead of last year at £283m, ahead of the Jefferies' £281.6m estimate, while adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) was £129.5m, compared with the £129m forecast.

"The capacity opening delays highlighted by the company in November 2012 were unexpected and related to the initial phases of new sites in a number of key locations. If anything, these delays should have impacted FY12, but evidently did not sufficiently to disturb performance versus estimates," the broker said.

For 2013, Jefferies has not made any major changes to its estimates and continues to forecast 17% headline growth and 14.5% organic growth.

"Recent speculation regarding downgrades and capacity delays is evidently misplaced, creating a compelling buying opportunity."

Shares were up 4.55% at 862.5p by 09:57 by 862.5p on Wednesday.

BC

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