Headquartered in Redwood City, California, Equinix, Inc. (EQIX) is a global digital infrastructure company with a market cap of $77.70 billion. Equinix provides a broad range of interconnection and colocation services, enabling businesses to connect with partners, customers, and employees worldwide securely. With its expansive network of data centers across key markets, Equinix empowers organizations to accelerate digital transformation by delivering reliable, high-performance infrastructure solutions.
EQIX has significantly underperformed the broader market over the last year. The stock has gained 3.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.3%. In 2024, the stock has gained 1.7%, compared to SPX's 17.2% gains on a YTD basis.
Narrowing the focus, EQIX also underperformed the iShares Cohen & Steers REIT ETF (ICF). The exchange-traded fund has gained 8.8% on a YTD basis.
The REIT reported Q1 on Aug. 7. Revenue of $2.16 billion fell short of analyst expectations. EQIX stock rose more than 3% the following day. Equinix expects full-year funds from operations between $34.67 and $35.30 per share, with revenue between $8.69 billion and $8.77 billion.
For the current fiscal year, ending in December, analysts expect EQIX’s FFO to decline 3.3% to $31.04 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 25 analysts covering EQIX stock, the consensus rating is a “Strong Buy.” That’s based on 19 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is more bullish than a month ago, with 17 analysts suggesting a “Strong Buy.”
On Aug. 22, Maher Yaghi from Scotiabank maintained a “Buy” rating on Equinix, with a price target of $954, which indicates a 16.5% upside from the current levels.
The mean price target of $909.18 represents an 11% premium compared to EQIX’s current price levels. The Street-high price target of $1,042 suggests an upside potential of 27.3%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
