Wells Fargo analyst Eric Luebchow maintained a Buy rating on Equinix (EQIX – Research Report) yesterday and set a price target of $1,065.00.
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Eric Luebchow has given his Buy rating due to a combination of factors including the encouraging acceleration in Equinix’s normalized recurring revenue growth, which is expected to positively influence financial metrics into 2026. Despite a revenue outlook that fell short of expectations, the strong momentum in bookings, particularly in high-performance computing and AI sectors, suggests a robust future demand.
Furthermore, Equinix’s strategic cost-cutting measures, including workforce reductions and increased automation, are projected to significantly enhance EBITDA margins, nearing 50% in the second half of 2024. The company is also making substantial investments in expanding capacity through xScale joint ventures in strategic locations, which are poised to support future growth and mitigate current revenue headwinds. These factors collectively underpin a confident outlook for improved financial performance in the coming years.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $1,200.00 price target.
EQIX’s price has also changed moderately for the past six months – from $819.090 to $935.200, which is a 14.18% increase.