Guggenheim initiates Equinix stock with Buy rating, $933 price target

Published 09/07/2025, 22:24
Guggenheim initiates Equinix stock with Buy rating, $933 price target

Investing.com - Guggenheim initiated coverage on Equinix (NASDAQ:EQIX), the $74.7 billion data center giant, with a Buy rating and a price target of $933.00 on Wednesday. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $837 to $1,200.

The research firm highlighted Equinix’s position as one of the two very large publicly traded data center operators, noting the company is well-positioned to benefit from its scale in terms of both access to capital and technology deployment. The company’s strong market position is reflected in its "GOOD" Financial Health Score from InvestingPro, with annual revenue reaching $8.8 billion and growing at 5.7%.

Guggenheim expects Equinix to emerge as one of the industry leaders as consolidation continues in the data center sector.

The firm’s analysis suggests that Equinix stock is currently undervalued, trading at 18.5 times Guggenheim’s 2026 EBITDA estimate and 19 times its 2026 AFFO estimate.

Equinix operates data centers globally, providing colocation and interconnection services to enterprises and cloud service providers.

In other recent news, Equinix has reported better-than-expected financial results for the first quarter of 2025 and raised its full-year outlook for revenue, EBITDA, and AFFO per share. Despite these positive results, the company has faced some challenges. Equinix’s updated long-term guidance through 2029 projects significant capital expenditures, leading to mixed reactions from analysts. TD Cowen reiterated a Buy rating with a $974 price target, citing AI inference growth potential, while Truist Securities lowered its price target to $904, noting near-term earnings pressure due to Equinix’s largest-ever build cycle. Mizuho (NYSE:MFG) also reduced its price target to $900, citing growth concerns and financing challenges. Meanwhile, Citi adjusted its price target to $950 following Equinix’s updated financial guidance, maintaining a Buy rating due to potential revenue and margin improvements. On a more optimistic note, Citizens JMP maintained a $1,200 price target, highlighting the company’s strong position in the growing AI infrastructure market. These developments reflect a complex landscape for Equinix, with analysts weighing both opportunities and challenges in the company’s future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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