Barclays Reiterates an 'Overweight' on Equinix (EQIX); Guidance Implies Continued Aggressive Growth Focus
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Price: $1,082.61 +0.51%
Rating Summary:
33 Buy, 14 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
Rating Summary:
33 Buy, 14 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
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Barclays reiterates an 'Overweight' on Equinix (NASDAQ: EQIX) price target of $110.00.
Barclays analyst says, "So long as the demand is there to support this level of investment, the ROIs EQIX has generated thus far certainly make internal investment a more attractive use of capital than cash returns to shareholders would be. As a result of the higher investment, however, FCF has been pushed out at least until 2013E; we are raising both our medium-term capex and revenue forecasts, and delaying our expectation of capital returns. So long as pricing remains stable (which we believe it has thus far), this strategy makes sense and is accretive to shareholder value. While this strategy has the potential to be significantly more accretive than our prior slower growth forecast, it also carries higher risks; as such, we leave our $110 price target for EQIX unchanged." (Barclays lowers FY11 EPS estimate from $1.85 to $1.58 and FY12 from $2.29 to $2.10."
For more ratings news on Equinix click here and for the rating history of Equinix click here.
Shares of Equinix closed at $101.53 yesterday.
Barclays analyst says, "So long as the demand is there to support this level of investment, the ROIs EQIX has generated thus far certainly make internal investment a more attractive use of capital than cash returns to shareholders would be. As a result of the higher investment, however, FCF has been pushed out at least until 2013E; we are raising both our medium-term capex and revenue forecasts, and delaying our expectation of capital returns. So long as pricing remains stable (which we believe it has thus far), this strategy makes sense and is accretive to shareholder value. While this strategy has the potential to be significantly more accretive than our prior slower growth forecast, it also carries higher risks; as such, we leave our $110 price target for EQIX unchanged." (Barclays lowers FY11 EPS estimate from $1.85 to $1.58 and FY12 from $2.29 to $2.10."
For more ratings news on Equinix click here and for the rating history of Equinix click here.
Shares of Equinix closed at $101.53 yesterday.
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