Equinix downgraded to Market Perform from Strong Buy at Raymond James

Raymond James analyst Frank Louthan double downgraded Equinix (EQIX) to Market Perform from Strong Buy without a price target following the analyst day. The firm believes the company is in the midst of a multi-year shift in its business as it seeks to double its capacity and better position itself for artificial intelligence-based demand. While the changes Equinix is making are likely to be beneficial in the long term, “there will be some pain out of the gate, as indicated by the front end of the guidance,” the analyst tells investors in a research note. Raymond James says the company’s growth rates in the short term are “muted,” and there is a material uptick in the spending outlook over the next couple of years as the company attempts to double its overall capacity.