Truist Securities analyst Matthew Niknam initiates coverage on Equinix (NASDAQ: EQIX) with a Buy rating and a price target of $1,127.00.

The analyst comments "We assume coverage of Equinix (EQIX) shares with an unchanged Buy rating and $1,127 (up from $1,087 prior), 12-month price target. Our positive view on shares centers around the below three points: (1) Equinix’s global scale and platform, which we believe provide the company an unmatched competitive advantage and moat, (2) Recent momentum and accelerated bookings, which enhance visibility towards achieving 2026E guidance and generating upside to 2025 Analyst Day targets, and (3) Our expectation for 9% AFFO/share CAGR between 2026E-2029E, underpinned by high-single digit revenue growth and incremental margin expansion over time. Where could we be wrong? Equinix’s valuation (similar to Digital Realty) is at the upper end of Comm/broader REIT peers, making it more susceptible to negative headlines re: interest rates or AI/IT investment. We also note that given Equinix’s colocation-focus (ie: xScale hyperscale JV sits off balance sheet), macro-related cyclical downturns or pull backs in IT investment could lead to higher churn. Lastly, Equinix has recently seen more meaningful changes within its C-suite, exposing it to potential operational/execution risk (though this has not been the case to date)."

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Shares of Equinix closed at $963.00 yesterday.