Stifel: We're Downgrading Equinix, 'Few Remaining Catalysts'

In a report published Thursday, Stifel analysts downgraded the rating on

from Buy to Hold, saying that the stock appears to be "fairly valued." After the positive PLR announcement, which had been long awaited, there seem to be with "few remaining positive catalysts," the analysts said. The company's shares are trading at an 11 percent premium to its DC REIT peers. Although Equinix warrants a premium to peers, in view of its "differentiated industry position" and "high barriers to entry," these strengths are already fully reflected in the share price. In the report Stifel noted, "With investor focus now turning squarely to the pending bid for Telecity, we believe incremental upside from current levels will be largely dependent on management's ability to complete and execute a near-flawless merger integration." The analysts believe that the company's management displayed "impressive stoicism" in the period prior to the counteroffer for Telecity. "Ultimately, we think the move makes sense as a longer-term defensive tactic to prevent the formation of a future global competitor," the analysts added.