Benchmark Capital Has Outlook On Equinix (EQIX)

Benchmark Capital has some thoughts on Equinix, Inc. EQIX, which is set to report earnings next week. It has a Buy rating on shares and a $83 price target. In a note to clients, Benchmark writes, "We expect Equinix will provide more detail regarding the recently announced Switch & Data miss and US churn, both of which contributed to Equinix' reduced 2H10 guidance on October 5. We believe the macro drivers remain intact for the data center industry and that scale creates a competitive advantage. We maintain a Buy rating. We view the 3Q10 lowered guidance as largely Equinix-specific. Half the miss was attributed to Switch & Data, which seems an integration and forecasting miscue. Further description of the churn and pricing outlook is required if investors are to regain confidence in Equinix." Shares of EQIX are up 63 cents to $75.99, a gain of 0.8%.