Equinix (EQIX – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Simon Flannery from Morgan Stanley maintained a Hold rating on the stock and has a $809.00 price target.
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.
Simon Flannery has given his Hold rating due to a combination of factors impacting Equinix’s financial outlook. The company’s fourth-quarter results aligned with expectations, though they fell short of broader market consensus, notably due to a shift of $22 million in non-recurring fees to the first quarter of 2025. Furthermore, Equinix’s guidance for 2025 indicated lower-than-expected revenue growth of 3-4%, attributed to foreign exchange headwinds, reduced power pass-throughs, and the winding down of specific business segments.
Despite these challenges, Equinix shows promising underlying growth indicators, with projected top-line growth of 7-8% and EBITDA growth of 7-9% for 2025. The firm also reported strong performance metrics, including record gross bookings and increased interconnections. However, capacity constraints in key markets and a churn rate at the higher end of the guidance range pose ongoing challenges. Additionally, there are no significant updates on ongoing investigations by the Department of Justice and the Securities and Exchange Commission, which adds to the cautious outlook.
In another report released today, Barclays also maintained a Hold rating on the stock with a $822.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EQIX in relation to earlier this year.