Not every company can instill enough confidence in Wall Street's biggest analysts for them to predict near-100% gains in the stock. Csquare (CSQR) just did that in less than a month of going public. The data center operator listed on the New York Stock Exchange on Thursday, July 16, 2026, and a wave of big banks started covering the stock that same day.
One of them stood out from the rest with a single call that turned a quiet post-IPO stock into one of the most debated names in the data center market. Bank of America Securities started coverage of Csquare on August 10, 2026, with a Buy rating and a $46 price target. At roughly $21.52, the stock's price at the time, that target implied about a 114% increase, according to CNBC.
Analyst Michael Funk set the target using a projected 2027 EV/EBITDA multiple of 22x. That measure compares a company's total value to its core earnings. A higher multiple means investors are paying more for each dollar of those earnings.
Funk says the stock underprices Csquare's growth. He also says the company is well placed to serve a market where supply can't keep up with demand. Funk built the case on three points, according to Investing.com.
First, data center supply cannot keep up with demand from AI and cloud workloads. Second, Csquare can add capacity faster and at lower development cost than many rivals, which helps it capture that demand. Third, the valuation multiple should rise as growth speeds up.
Csquare also has a large backer. Investment firm Brookfield controls the company and holds about 67% of the voting power after the IPO, according to the IPOScoop. That backing supports plans to expand and modernize existing sites rather than build everything from scratch.
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