Equinix downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Equinix (EQIX) to Market Perform from Outperform with a price target of $850, down from $1,045. The company’s analyst day highlighted a significant long-term growth opportunity, though its adjusted funds from operations 5%-9% growth forecast through 2029 “underwhelmed,” with 2026 growth at the low-end, the analyst tells investors in a research note. The firm says higher investments are weighing as Equinix builds bigger to position for artificial intelligence inference demand. While the company’s growth should accelerate longer term, potentially to 10%-plus by 2030, its near-term growth “will be more subdued,” contends BMO. With the company’s growth lower and few upcoming catalysts, BMO moved to the sidelines with a preference for Digital Realty (DLR).