JPMorgan raises Equinix stock price target to $940 on solid Q2 results

Published 31/07/2025, 16:10
JPMorgan raises Equinix stock price target to $940 on solid Q2 results

Investing.com - JPMorgan has raised its price target on Equinix (NASDAQ:EQIX) to $940.00 from $935.00 while maintaining an Overweight rating following the company’s second-quarter earnings report. The data center giant, currently trading at $805 with a market capitalization of $79 billion, appears overvalued according to InvestingPro Fair Value metrics.

Equinix delivered what JPMorgan described as a "solid second quarter" with revenue approximately in-line with the firm’s estimates, benefiting from better-than-expected non-recurring revenue. The data center company beat analyst expectations on both adjusted EBITDA and AFFO metrics, with EBITDA reaching $3.66 billion and revenue growing 5.67% year-over-year.

Bookings momentum continued in the second quarter with Equinix closing 4,100 deals across 3,300 customers, generating $345 million in annualized gross bookings. This represents a 14.2% year-over-year increase, though bookings declined 0.9% compared to the previous quarter. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong cash flow metrics.

JPMorgan noted that management reported a positive start to third-quarter bookings, though investors continue to evaluate this metric and its potential volatility. The firm highlighted this ongoing assessment in its analysis.

Churn for the quarter came in at 2.6%, slightly above Equinix’s expected range of 2-2.5%, which the company attributed to a customer bankruptcy according to JPMorgan’s research note.

In other recent news, Equinix reported a 5% year-over-year revenue increase for the second quarter of 2025, reaching $2.26 billion. The company also noted that its adjusted EBITDA margins achieved a notable 50%, reflecting solid financial performance. Equinix has updated its 2025 revenue guidance, anticipating growth in the range of 7-8%, fueled by robust demand for its digital infrastructure services. JMP Securities has reiterated its Market Outperform rating on Equinix, setting a price target of $1,200.00. This decision was influenced by the company’s second-quarter results, which provided clarity on its previously announced capital expenditure increase. These developments highlight Equinix’s strategic expansions and financial stability.

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