Credit Suisse Sticks to Its Buy Rating for Equinix

By Carrie Williams

In a report released today, Sami Badri from Credit Suisse reiterated a Buy rating on Equinix (NASDAQ: EQIX), with a price target of $519. The company’s shares closed yesterday at $435.83.

Badri commented:

“We expound on EQIX’s interconnection strategy in our 2018 Outlook, “The Cloud Has Four Walls.” EQIX also provided updated 2018 guidance with revenues/ adj. EBITDA/ AFFOS of $5.01bn/ $2.39bn/ $20.38 respectively. As such, we update our FY18/ FY19 revenues to $5.03bn/ $5.74bn (from $5.26bn/ $5.96bn) and decrease our FY18/ FY19 AFFOS to $20.82/ $24.33 (from $22.80/ $25.84), respectively. We lower our target price to $519 (from $524) to reflect the decrease in AFFOS in FY19. $800 Million Acquisition of Infomart Dallas: EQIX also announced its acquisition of Infomart Dallas. The facility is one of the largest U.S. interconnection hubs and currently home to four of the eight EQIX Dallas IBX data centers, which altogether support ~3,500 cabinets. This transaction adds four facilities to EQIX’s portfolio and the building generated ~$50mil of revenues in 2017 and expected to increase recurring revenues as a percentage of total revenues +45%.”

According to TipRanks.com, Badri is a 1-star analyst with an average return of -3.7% and a 30.8% success rate. Badri covers the Financial sector, focusing on stocks such as QTS Realty Trust, Coresite Realty, and Digital Realty.

Currently, the analyst consensus on Equinix is Strong Buy and the average price target is $535.25, representing a 22.8% upside.

In a report released today, Oppenheimer also assigned a Buy rating to the stock with a $525 price target.

Based on Equinix’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $1.12 billion and quarterly net profit of $79.9 million. In comparison, last year the company earned revenue of $943 million and had a net profit of $63.64 million.

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Equinix, Inc. engages in the provision of collocation space and related service. It operates through the following geographical segments: Americas; Europe, Middle East and Africa, and Asia-Pacific. The company was founded on June 22, 1998 and is headquartered in Redwood City, CA.