In a report released today, Ari Klein from BMO Capital reiterated a Buy rating on Equinix (EQIX – Research Report), with a price target of $1,065.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Ari Klein has given his Buy rating due to a combination of factors including Equinix’s strong underlying metrics despite some external noise. Although the company’s 2025 guidance and 4Q24 results were lighter than expected, these were influenced by factors like foreign exchange volatility. The company’s fundamental performance remains robust with record gross bookings and a backlog reaching multi-year highs, indicating strong future demand.
Moreover, Equinix is benefiting from a notable increase in AI-related demand, and its capacity constraints are expected to drive accelerating recurring revenue growth through 2025. The company is also poised for a 190 basis points improvement in EBITDA margins, which, combined with a target price of $1,065, supports the positive outlook leading into 2026. These elements contribute to a favorable long-term growth trajectory, justifying the Buy rating.
In another report released on February 11, Bank of America Securities also reiterated a Buy rating on the stock with a $1,080.00 price target.