Nomura Securities Maintains a 'Buy' on Equinix (EQIX); Getting in Focus

Nomura Securities maintains a 'Buy' on Equinix (NASDAQ: EQIX) price target of $210.00.

Analyst, Mike McCormack, said, "Equinix announced the sale of 16 data centers representing less than 5% of the company’s gross square feet and 2% of consolidated revenues. We believe that the $35-40mn of revenue sold in this transaction has below-average EBITDA margins, given the size of the facilities and second-tier nature of the markets, limiting the cash-flow impact to the company. We expect the high end of full-year EBITDA and EPS impacts to be <2% and ~5%, respectively. Our DCF-based target price of $210 is based on an 8.5% cost of capital, 9.5x terminal EBITDA multiple, and 3% perpetual growth. Our target price is 16.5x our estimated 2013 AFFO of $12.70, a discount to the REIT and tower company consensus valuation range of 19-22x."

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 $198.37 yesterday.

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