UPDATE: Stifel Nicolaus Reiterates Buy Rating, Lowers PT on Equinix Following Disappointing 2Q13 Results/Outlook

In a report published Thursday, Stifel Nicolaus analyst Todd Weller reiterated a Buy rating on Equinix EQIX, but lowered the price target from $265.00 to $250.00. In the report, Stifel Nicolaus noted, “Equinix's 2Q13 results/outlook was disappointing relative to expectations. We believe the weak top-line performance looked worse on the surface relative to the realities of the business, with FX headwinds and impacts from an accounting change crimping revenue. However, the quarter/outlook also reflected moderate pressures on the business, including sales execution issues in Germany, longer enterprise sales cycles, and a reduction in average deal sizes. The combination of these factors along with what in hindsight may have been overly aggressive 2H assumptions resulted in Equinix reducing its 2013 outlook. While we are disappointed in the results/outlook, we view this more as a ‘bump in the road' as opposed to being a meaningful degradation in the fundamental outlook. Given what we consider to be a continued attractive fundamental story and valuation, we remain constructive on the shares and recommend buying on weakness.” Equinix closed on Wednesday at $191.63.