BMO Capital analyst Ari Klein has reiterated their bullish stance on EQIX stock, giving a Buy rating on June 20.
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Ari Klein has given his Buy rating due to a combination of factors that highlight Equinix’s strategic positioning and growth potential. The upcoming Analyst Day is expected to emphasize the intrinsic value of Equinix’s premium platform and its future growth avenues, particularly in areas like AI, which is seen as a significant but uncertain opportunity. Klein anticipates a slight moderation in Equinix’s long-term revenue growth outlook, adjusting from 8-10% to 7-9%, which reflects stable pricing and some maturity in traditional colocation demand.
Despite this moderation, Klein expects an increase in AFFO per share growth to 7-11% from the previous 7-10%, driven by ongoing margin expansion and growth in xScale. The combination of a strong competitive position through connectivity and a robust balance sheet supports Equinix’s premium valuation, reinforcing the Buy rating. These factors collectively underpin the positive outlook for Equinix, justifying the Outperform rating and updated estimates.
In another report released on June 20, Citi also maintained a Buy rating on the stock with a $990.00 price target.