CFRA Downgrades Equinix (EQIX) to Hold

CFRA analyst Kenneth Leon downgraded Equinix (NASDAQ: EQIX) from Buy to Hold with a price target of $900.00.

The analyst comments "Our downgrade to Hold from Buy is based on valuation, with the share price near our view of fair value - our $900 target using a high equity risk premium on a forward P/FFO of 34.0x, above direct peers. Our 2024 FFO estimate is $24.70 (consensus is $24.74) and 2025's is $26.50 ($26.74). Our revenue estimates are $8.75B in 2024 and $9.5B in 2025. EQIX is benefiting from a unique market position, strategic locations, a "sticky" customer ecosystem, sales expertise, and the presence of leading global networks within its facilities. The trust's cloud-based global platform through distributed infrastructure is a critical source of differentiation, making EQIX the partner of choice for many of the largest tech companies. Industry fundamentals remain favorable, with significant supply constraints in various major data center markets. Customer churn is less than 2.0%-2.5%. Capital spending realized $648M total outlay in Q2 24, with major projects in eight markets and 80% of capex tied to long-term ground leases."

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 $877.20 yesterday.

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