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Investing.com - Raymond (NSE:RYMD) James highlighted Equinix (NASDAQ:EQIX), the $77.5 billion data center giant, as a potential beneficiary of a new White House executive order aimed at accelerating federal permitting for data center infrastructure. With the company’s upcoming earnings report due on July 30, investors are closely watching this development. InvestingPro data shows analysts maintain a bullish stance on the stock, with significant upside potential to their price targets.
The executive order, issued Wednesday, outlines a federal approach to streamline development of data centers and related infrastructure, with Raymond James calling it "a significant development that can help the data center industry" over the coming years. For Equinix, which generated $8.8 billion in revenue and maintains a robust EBITDA of $3.7 billion, this initiative could further strengthen its market position.
The firm noted that the largest benefit comes from streamlining rights of way (ROW) approvals for critical data center inputs including fiber, transmission lines, and gas pipelines, with federal agencies directed to work together to simplify these processes.
The order also addresses land availability by directing various federal agencies to prioritize data center development on government-controlled properties, potentially including military bases, which Raymond James views as "a step in the right direction."
Raymond James connected this initiative to a May executive order on deploying advanced nuclear reactor technologies, suggesting data centers could benefit from additional power generation, with the firm specifically stating "this order would appear to benefit EQIX in particular as they embark on this journey over the next couple of years."
In other recent news, Equinix has been active with several developments. Notably, Guggenheim initiated coverage on Equinix with a Buy rating and a price target of $933, highlighting the company’s strong position among large publicly traded data center operators. In a related update, JMP Securities reiterated its Market Outperform rating on Equinix, maintaining a $1,200 price target. This comes after Equinix announced plans to double capacity, raising investor concerns about growth and industry leadership. Additionally, activist investor Elliott Investment Management has reportedly increased its stake in Equinix, becoming one of its top-10 investors. In corporate leadership news, Equinix appointed Arquelle Shaw as President of the Americas region and Shane Paladin as Chief Customer and Revenue Officer. Shaw will oversee management and strategy across the Americas, while Paladin will lead customer experience and revenue operations globally. These appointments reflect Equinix’s focus on strategic growth and customer engagement.
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