Equinix stock price target maintained at $1,200 by Citizens JMP

Investing.com - Citizens JMP maintained its Market Outperform rating and $1,200 price target on Equinix (NASDAQ:EQIX) stock Wednesday following the company’s analyst day in New York City. The target represents a significant upside from the current price of $745.53, with InvestingPro data showing the stock currently trades at an elevated valuation relative to its Fair Value.

With a market capitalization of $73.4 billion and an "GOOD" Financial Health score from InvestingPro, Equinix continues to demonstrate strong fundamentals. During the event, Equinix CEO Adaire Fox-Martin addressed market concerns by stating, "I don’t think we have a demand issue. It’s more a supply issue in terms of the capacity that’s available to us today to serve all of our customers as that would wish and want to be served."

The data center operator presented a new artificial intelligence infrastructure total addressable market (TAM) estimate at the bi-annual meeting, projecting significant growth in the coming years.

According to the company’s forecast, the AI infrastructure market is expected to increase from $38 billion in 2025 to $94 billion by 2029.

Citizens JMP analyst Greg Miller reaffirmed his positive outlook on Equinix stock, maintaining both the Market Outperform rating and the $1,200 price target following the company’s presentations.

In other recent news, Equinix has been the subject of several analyst updates following its recent analyst day. CFRA downgraded Equinix from Strong Buy to Buy, lowering the price target to $850 due to concerns about data center demand, particularly outside the United States. They maintained their estimates for funds from operations, aligning with consensus, but expressed skepticism about Equinix’s ability to raise annualized rental revenue. Meanwhile, JPMorgan kept its Overweight rating with a $935 price target, noting potential growth in AI infrastructure but citing disappointing financial guidance as a concern. Stifel also adjusted its price target downward to $1,010, highlighting the impact of Equinix’s accelerated capital plan and higher borrowing costs on future growth. KeyBanc maintained a Sector Weight rating, expressing caution due to lowered revenue and adjusted funds from operations guidance. Finally, Scotiabank (TSX:BNS) reduced its price target to $965, acknowledging increased capital expenditures related to AI infrastructure investments, which they believe will pressure short-term growth but remain optimistic about long-term prospects. These recent developments reflect varied analyst perspectives on Equinix’s growth trajectory and financial outlook.

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