Citi Sees Nearly $20 In Upside In Equinix (EQIX)

Citi Investment Research sees nearly $20 in upside in shares of Equinix, Inc.

, as the company it set to report earnings next Tuesday after the bell. It has a $94 price and a Hold rating on shares. In a note to clients, Citi writes, "We maintain our Hold rating given our expectations for an absence of meaningful acceleration in revenue growth during 2H/10, our outlook for slower pro forma revenue growth during ‘11 of 14-15%, & the uncertainty for EQIX to slow the rate of capital reinvestment in the domestic segment to increasingly focus on cash flow generation. We may revisit our thesis on EQIX to the extent: 1) visibility improves for the pace of churn; 2) revenue growth increases from the SDXC assets; & 3) EQIX retains its discipline on price & reduces the rate of capital reinvestment in the U.S. until the sales strategy can show success at accelerating the level of booking activity." Shares of EQIX closed at $75.41 yesterday.