We see a steady increase in the client base and strategic acquisitions that could enhance its revenue potential and expand its geographic reach. Though increased competition, European exposure, industry consolidation, and a long sales cycle will remain causes for concern, we believe that Equinix efforts to expand current facilities and its recurring revenue model will support the stock.
We upgrade the stock from Neutral to Outperform rating. Our target price of $97.00 represents a multiple of 129.3x fiscal 2010 EPS estimate above the industry average and S&P 500.
EQUINIX INC (EQIX): Free Stock Analysis Report
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