Citi Cuts Equinix To Hold (EQIX)

Citi Investment Research downgraded shares of Equinix, Inc.

to Hold from Buy, and lowered the price target to $94 from $121. In the research report, Citi writes, "We are reducing our rating on EQIX from Buy to Hold and reducing our target price from $121 to $94 per share in the absence of a meaningful acceleration in revenue growth during 2H/10, our outlook for slower PF revenue growth during ‘11 of 14-15%, & the possibility for Equinix to slow the rate of capital reinvestment in the domestic segment to increasingly focus on cash flow generation. While gross revenue bookings were cited as favorable across the heritage & Int'l operations, we view results as an early sign-post that revenue growth for its core U.S. target segment may be slowing sooner than we anticipated." Shares of EQIX gained $3.99 to close at $105.09, a gain of 3.95%.