Wells Fargo Starts Equinix (EQIX) at Outperform; Shareholder Repatriation Should Drive Multiple Expansion Opportunity
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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
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Wells Fargo initiates coverage on Equinix (NASDAQ: EQIX) with an Outperform. PT range $123-$131.
Wells analyst says, "In our opinion, the network-neutral data center space represents a safe, derivative play on the continued growth of IP and Internet traffic. Near term, we think retail pricing is relatively stable and that demand trends remain strong. As a result, we think EQIX has the potential to exceed EBITDA estimates in 2012. Additionally, expansion initiatives and its continued ability to scale margins could provide a catalyst to EQIX shares longer term. Lastly, the potential to reallocate cash to shareholders and achieve positive FCF in 2013 should create an opportunity for multiple expansion. Introducing 2011E EBITDA/share est of $15.14 and 2012E of $17.54."
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 $99.66 yesterday.
Wells analyst says, "In our opinion, the network-neutral data center space represents a safe, derivative play on the continued growth of IP and Internet traffic. Near term, we think retail pricing is relatively stable and that demand trends remain strong. As a result, we think EQIX has the potential to exceed EBITDA estimates in 2012. Additionally, expansion initiatives and its continued ability to scale margins could provide a catalyst to EQIX shares longer term. Lastly, the potential to reallocate cash to shareholders and achieve positive FCF in 2013 should create an opportunity for multiple expansion. Introducing 2011E EBITDA/share est of $15.14 and 2012E of $17.54."
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 $99.66 yesterday.
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