Equinix, Inc. (EQIX) is a global digital infrastructure company with a market cap of $94.5 billion. The California-headquartered company provides a broad range of interconnection and colocation services, enabling businesses to connect with partners, customers, and employees worldwide securely.
EQIX has underperformed the broader market over the last year. The stock has gained 22.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31.8%. In 2024, the stock has gained 21.6%, compared to SPX's 25.8% gains on a YTD basis.
Narrowing the focus, EQIX also underperformed the Real Estate Select Sector SPDR Fund (XLRE), which has gained 24% over the past year and 12.9% in 2024.
On Oct. 30, EQIX announced its third-quarter results, resulting in a fall of more than 2% in the following two trading sessions. It posted an FFO of $9.05 per share, surpassing the consensus estimate of $8.70 per share. The company also posted revenue of $2.2 billion, which matched analysts' expectations. For the full year, Equinix expects FFO to range between $34.81 and $35.22 per share, with revenue projected between $8.75 billion and $8.79 billion.
For the current fiscal year, ending in December, analysts expect EQIX’s FFO to decline 3.3% to $31.06 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 26 analysts covering EQIX stock, the consensus rating is a “Strong Buy.” That’s based on 20 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is more bullish than two months ago, with 19 analysts suggesting a “Strong Buy.”
On Nov. 20, Stifel Financial Corp. (SF) analyst Erik Rasmussen raised the price target on Equinix to $1,080 from $995 while maintaining a “Buy” rating. After meeting with Equinix management at the Nareit REITworld conference, Rasmussen expressed confidence in the company, citing strong messaging around AI and results that continue to exceed expectations.
While EQIX currently trades over its mean price target of $909.18, the Street-high price target of $1,085 suggests an upside potential of 10.8%.
