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Investing.com - TD Cowen has reiterated its Buy rating and $974.00 price target on Equinix (NASDAQ:EQIX), naming it among the firm’s three favorite investment ideas alongside Uniti and T-Mobile. According to InvestingPro data, analyst targets range from $837 to $1,200, with the stock currently trading at $787.93, suggesting significant upside potential.
Equinix reported better-than-expected financial results for Q1 2025, though key performance indicators came in below expectations. The company’s revenue grew 5.67% to $8.8 billion in the last twelve months, with a healthy gross profit margin of 49.4%. The company provided mixed guidance for Q2 2025 while raising its full-year 2025 outlook for revenue, EBITDA, and AFFO per share.
At its recent Analyst Day, Equinix management updated long-term guidance through 2029, projecting 7-10% organic revenue growth, 52% EBITDA margins, 5-9% AFFO per share growth, and $4-5 billion in annual capital expenditures. The higher-than-expected capex announcement contributed to Equinix shares falling approximately 12% since the event. For deeper insights into Equinix’s financial health and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro.
TD Cowen views the increased capital spending as necessary to capture growing demand from AI inference data centers and larger enterprise deals, despite near-term pressure on AFFO per share, which is expected to drop to 5% in 2026 before recovering.
The firm believes Equinix’s current valuation offers an attractive entry point for investors interested in the multi-year AI inference trend, citing the company’s market-leading position in cloud on-ramps and its interconnection ecosystem as competitive advantages.
In other recent news, Equinix has been the focus of several analyst updates following its recent Analyst Day. Truist Securities lowered its price target for Equinix to $904, citing near-term earnings pressure due to its largest-ever build cycle aimed at AI infrastructure, with expected benefits not materializing until 2027-2029. Similarly, Mizuho (NYSE:MFG) reduced its price target to $900, highlighting revised growth projections and financing challenges as key concerns. Citi also adjusted its price target to $950, reflecting updated guidance on retail capacity expansion and financing costs, yet maintained a Buy rating due to prospects for improved core revenue and margin expansion.
Meanwhile, Citizens JMP maintained its $1,200 price target, expressing confidence in Equinix’s demand outlook and the growth potential of the AI infrastructure market. In contrast, CFRA downgraded Equinix from Strong Buy to Buy, reducing the price target to $850, due to uncertainties in data center demand and skepticism about the company’s ability to raise rental revenue. CFRA noted potential delays in capital expenditures and challenges in securing new tenant contracts as contributing factors to its cautious stance. These recent developments provide investors with a range of perspectives on Equinix’s financial outlook and strategic positioning.
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