Savvis: Jefferies Downgrades to Hold; Sees Rising Capex

Jefferies analyst Jonathan Schildkraut this morning cut his rating on Savvis (SVVS) to Hold from Buy, citing “decreasing visibility and a belief the company will need to spend more in capex.” He notes that since the Web-hosting company reported Q2 results, its shares have appreciated 8 percent in period in which its peers have fallen by an average 14 percent.

Schildkraut says channel checks find that the market for large-scale managed hosting projects “remains lukewarm, as customers continue to drag out the sales cycle.” At the time, he said that based on conversations with other managed hosting providers, he now thinks his old capex estimates for the company were too low.

Read the rest of this post

Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »