Stifel said it believes Cordiant Digital Infrastructure Ltd (LSE:CORD) shares, currently trading at a 27% discount to the value of its underlying assets, could see that gap narrow to less than 20% as it repeated its 'positive' stance on the stock.
The update follows news that Cordiant has sold a 10% stake in Datacenter United (DCU) to another Cordiant-managed fund for €20 million, freeing up cash for new investments or to help pay down debt.
While this is a relatively minor transaction in the grand scheme, it gives Cordiant more financial flexibility to make further acquisitions and keep its growth story moving.
Stifel notes that the sale was completed at the original 2024 purchase price, with no profit made but also no loss, and that governance at DCU remains unchanged.
Its analysts added that this move could support Cordiant’s ability to tap further equity in the future if needed.
"In the context of the whole fund, this is a small transaction," Stifel said.
"However, it does free up some capital to continue the strategy of making smaller bolt-on acquisitions elsewhere.
"As we said in our note two weeks ago, we believe there is scope for Cordiant to trade on a sub-20% discount vs 27% currently."