Michael Elias, an analyst from TD Cowen, maintained the Buy rating on Equinix (EQIX – Research Report). The associated price target was lowered to $978.00.
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Michael Elias has given his Buy rating due to a combination of factors that highlight Equinix’s potential for future growth. Despite reporting lower than expected results for the fourth quarter of 2024 and providing conservative guidance for 2025, Elias believes the timing of capacity delivery is the primary reason for the slower organic revenue growth. This is expected to change as the development pipeline indicates a significant increase in capacity delivery in the second half of 2025.
Elias is optimistic about Equinix’s future, noting that management’s expectations for nearly 50% EBITDA margins in the latter half of 2025 and strong demand support the potential for accelerated growth in 2026. The record gross bookings in the fourth quarter of 2024, although limited by available inventory, suggest robust demand, particularly in Tier 1 markets. As a result, Elias anticipates increased capital expenditure to meet this demand, reinforcing the fundamental thesis of Equinix’s growth trajectory and justifying a Buy rating.
According to TipRanks, Elias is ranked #2450 out of 9369 analysts.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $1,200.00 price target.