Equinix 1Q Growth Necessitates Higher Expansion Capex, Morgan Stanley Reports (EQIX)

According to a recent report by Morgan Stanley, Equinix Inc's EQIX 1Q results show increasing revenue growth but insists it needs 42% materially higher expansion capex for 2011. Morgan Stanley explains, “We are raising our 2011 revenue and EBITDA to reflect the 1Q bookings momentum, stabilizing MRR/ cabinet trends, and addition capacity coming online. However, our capex estimate goes to $673M (from $560M), above the high end of the current guidance range.” Morgan Stanley maintained Equinix's Equal-weight rating and closed yesterday at $96.60.