Equinix (EQIX) Reiterated 'Buy' as REIT Conversion Road Officially Open - Nomura

Nomura Securities analyst Adam Ilkowitz reiterated a Buy rating and $222 price target on Equinix (NASDAQ: EQIX) as the REIT conversion road officially opens.

Ilkowitz comments, "CBS Corporation announced on April 17th that it received a favorable private letter ruling (PLR) from the IRS for the REIT conversion of its publicly-traded CBS Outdoor America subsidiary. This is positive for Equinix because it signals the IRS is again issuing PLRs for REIT conversions after temporarily halting the practice in 2013. After a difficult 2013, we believe the 2014 guidance set by management is achievable in this low global growth environment. We forecast revenue growth of 10.6%. We estimate a first-year dividend of $5.31/share, equal to a 3% yield at the current price."

For an analyst ratings summary and ratings history on Equinix click here. For more ratings news on Equinix click here.

Shares of Equinix closed at $179.75 yesterday.

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