Wachovia Initiates Coverage on Data Center Space with an OVERWEIGHT, Resumes Coverage on Equinix (EQIX) and Switch & Data (SDXC)

December 19, 2008 9:14 AM EST
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Price: $686.43 +2.45%

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Wachovia initiates coverage on the data center space with an OVERWEIGHT rating.

Wachovia analyst says, "Within the group, we are resuming coverage on network neutral data center operators – Equinix (Nasdaq: EQIX) and Switch and Data (Nasdaq: SDXC) with OUTPERFORM ratings. We believe the network neutral data center space represents a relatively safe derivative way to play on the continued growth of IP and internet traffic. While the market and these stocks remain volatile, we feel confident that both EQIX and SDXC can hit 2009 forecasts...While there is not a 1:1 correlation to internet traffic growth and leasing demand, we believe that overall growth in internet and IP traffic (which has been growing 50% - 60% annually) will drive demand for data center space. Key macro drivers include penetration of broadband and up-take of faster tiers of service, the introduction of more bandwidth intensive applications, and the proliferation of real internet content on wireless handsets."

Equinix, Inc. (Equinix) provides network neutral colocation, interconnection and managed services to enterprises, content companies, systems integrators and a network provider.

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