UPDATE: Citigroup Downgrades Equinix to Neutral on Valuation

Citigroup reduced its rating on Equinix

from Buy to Neutral on valuation, but raised its price target from $180 to $200. Citigroup said, "We are reducing our rating on Equinix from Buy to Neutral based on: 1) valuation given the recent stock price outperformance; 2) our belief that the share price performance over the next 12 months increasingly depends on the prospects for Equinix to pursue REIT conversion, more so than a fundamental re-rating of the business; and 3) we do not expect a more meaningful organic acceleration in revenue growth for 2012 relative to consensus expectations partly based on our analysis of advanced billings and gross revenue billings." Equinix closed at $186.76 on Friday.