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Investing.com - Citizens JMP maintained its Market Outperform rating on Equinix (NASDAQ:EQIX) with a price target of $1,200.00 on Thursday. According to InvestingPro, the company, currently trading at $824.31, appears overvalued based on its proprietary Fair Value model. With a market capitalization of $81 billion, Equinix maintains a "GOOD" overall financial health score.
The research firm highlighted that one of the few negatives some investors have focused on regarding Equinix in recent years has been its lack of presence in the wholesale/hyperscale business segment, which has generated larger equity gains than other segments.
Citizens JMP noted that while competing with privately-held companies in this space is "next to impossible" due to their ability to translate "lower unlevered yields into higher returns with significantly more leverage," Equinix is expected to become a more significant competitor in this market.
The firm anticipates Equinix will increase its involvement in the wholesale/hyperscale business going forward compared to its past participation levels.
Citizens JMP stated it "would not be surprised if Equinix made a meaningful acquisition to accelerate its entrance into this market," suggesting potential strategic moves by the data center company to strengthen its position in the wholesale segment.
In other recent news, Equinix has announced the issuance of €1.5 billion in senior notes due in 2029 and 2034, which are intended to finance or refinance green projects. The notes, issued by Equinix Europe 2 Financing Corporation LLC, are fully guaranteed by Equinix and will mature in May 2029 and 2034, respectively. Meanwhile, Citi analysts have raised their price target for Equinix to $990, maintaining a Buy rating, following the company’s strong first-quarter performance and increased 2025 guidance. The company has reported a robust pipeline and bookings, which are expected to sustain revenue growth despite some churn in the EMEA region.
Additionally, JMP Securities has reiterated its Market Outperform rating for Equinix, with a price target of $1,200, citing the company’s attractive valuation and industry prospects, particularly driven by AI demand. Stifel analysts have also maintained their Buy rating and a $1,050 price target, highlighting Equinix’s strong market position and positive pricing trends. However, Raymond (NSE:RYMD) James has downgraded Equinix to Market Perform, expressing concerns over the company’s ambitious business transformation plans, which may pose short-term challenges. Despite these concerns, Equinix’s strategic shifts are seen as potentially beneficial in the long term.
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