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Investing.com - JMP Securities has reiterated its Market Outperform rating and $1,200.00 price target on Equinix (NASDAQ:EQIX), currently trading at $789.19 with a market cap of $77.2 billion, following the company’s analyst day in late June 2025. According to InvestingPro analysis, the stock appears overvalued at current levels.
The stock traded nearly 18.0% lower after Equinix announced plans to double capacity and invest in initiatives to accommodate changing data center customer needs, triggering investor concerns about slowing AFFO/share growth and questions about the company’s industry leadership. Despite the recent decline, Equinix maintains a GOOD financial health score and shows steady revenue growth of 5.67% over the last twelve months.
JMP noted that while Equinix has been cautious in pivoting toward hyperscale-like customers, this approach aligns with the consistent strategy that has built the company’s success.
The firm, which has covered Equinix for two decades, views the recent stock downturn as a buying opportunity, similar to past disruptions that ultimately benefited investors.
JMP’s $1,200 price target implies approximately 30 times Equinix’s estimated 2026 AFFO (Adjusted Funds From Operations).
In other recent news, Equinix has reported better-than-expected financial results for the first quarter of 2025, although some key performance indicators fell short of expectations. The company has adjusted its guidance for the second quarter but raised its full-year outlook for 2025, projecting growth in revenue, EBITDA, and adjusted funds from operations (AFFO) per share. In addition, Equinix has announced a significant increase in its capital expenditures, aiming to capture the growing demand from AI inference data centers and larger enterprise deals. Elliott Investment Management has increased its stake in Equinix, becoming one of the top 10 investors in the company. This development has been viewed positively by Evercore ISI, which maintained its Outperform rating. Guggenheim initiated coverage on Equinix with a Buy rating, citing the company’s strong position in the data center sector. Equinix has also made notable leadership changes, appointing Arquelle Shaw as President of the Americas region and Shane Paladin as Chief Customer and Revenue Officer. These appointments are expected to drive growth and enhance customer experience across the company’s operations.
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