UPDATE: FBN Securities Initiates Equinix at Outperform on Strong Colocation Outlook

FBN Securities initiated Equinix EQIX with an Outperform rating rating and a $270.00 price target. FBN Securities analyst Shebly Seyrafi noted, "The company is the leading colocation company in the world. Customers who use its (high-margin) Interconnection business (currently 15% rev. and expected to go higher) are "sticky" as once they are connected to other customers via "Platform Equinix", they are highly reluctant to move to other, cheaper competitive offerings. Moreover, the expected conversion of the company to a REIT (by 2015) should result in much lower taxes starting in 2015 and in a large distribution ($700M-$1.1B, ~20% of which is cash, the rest in stock) to shareholders, with most of this expected to take place before 2015." Equinix closed at $206.97 on Tuesday.