Kaufman Bros. Maintains a 'Hold' on Equinix (EQIX); Solid Quarter; Capital Spending for 2012 Going Up Again
Tweet
Share
E-mailGet Alerts EQIX Hot Sheet
Price: $1,102.10 +2.64%
Rating Summary:
33 Buy, 14 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
33 Buy, 14 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Kaufman Bros. maintains a 'Hold' on Equinix (NASDAQ: EQIX) price target raised $2 to $87.
Kaufman analyst says, "Equinix reported a solid quarter with EBITDA ahead of forecast on better than expected revenue from the ALOG acquisition and lower SG&A given the company's slower pace of hiring. Our computed average revenue per cabinet was down sequentially as European MRR and currency headwinds may have diminished sequential improvement. Management gave initial guidance for 2012 that was above our previous forecast and in line with the Street, but offered capex guidance higher than most expected, which means 2012 results will likely once again generate negative free cash flow. Management indicated pricing is stable and that they remain more insulated to pricing pressures in the market. We believe caution is warranted for investors in the first half of 2012. While Equinix's business model generates a high level of recurring revenue, making the shares more defensible, it nonetheless continues to generate no free cash flow as the company invests in building out its footprint."
For more ratings news on Equinix click here and for the rating history of Equinix click here.
Shares of Equinix closed at $97.44 yesterday.
Kaufman analyst says, "Equinix reported a solid quarter with EBITDA ahead of forecast on better than expected revenue from the ALOG acquisition and lower SG&A given the company's slower pace of hiring. Our computed average revenue per cabinet was down sequentially as European MRR and currency headwinds may have diminished sequential improvement. Management gave initial guidance for 2012 that was above our previous forecast and in line with the Street, but offered capex guidance higher than most expected, which means 2012 results will likely once again generate negative free cash flow. Management indicated pricing is stable and that they remain more insulated to pricing pressures in the market. We believe caution is warranted for investors in the first half of 2012. While Equinix's business model generates a high level of recurring revenue, making the shares more defensible, it nonetheless continues to generate no free cash flow as the company invests in building out its footprint."
For more ratings news on Equinix click here and for the rating history of Equinix click here.
Shares of Equinix closed at $97.44 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- Powell Industries (POWL) PT Lowered to $235 at Cantor Fitzgerald
- Freedom Broker Upgrades Serve Robotics (SERV) to Buy
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Kaufman Bros.Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
