Equinix (EQIX) Shows Mixed Performance Amid Positive Outlook
Company Overview and Recent Stock Trends
Equinix, Inc. (EQIX), a global leader in digital infrastructure, boasts a market capitalization of $94.5 billion. Based in California, Equinix offers a diverse array of interconnection and colocation services designed to help businesses securely connect with partners, customers, and employees around the globe.
Stock Performance Comparison
Despite its prominent position in the market, EQIX has lagged behind the broader market over the past year. The stock increased by 22.9%, while the S&P 500 Index ($SPX) surged by 31.8%. In 2024, EQIX’s gains of 21.6% have also fallen short of the S&P’s 25.8% growth.
Comparison with Sector Performance
When assessing EQIX’s performance alongside the Real Estate Select Sector SPDR Fund (XLRE), it is evident that EQIX has not kept pace. The XLRE has experienced a 24% rise over the past year and a 12.9% increase in 2024.
Recent Earnings Report and Projections
On October 30, Equinix released its third-quarter earnings, which contributed to a decline of more than 2% in the stock price over the subsequent two trading sessions. The company reported funds from operations (FFO) of $9.05 per share, exceeding the consensus estimate of $8.70. Revenue reached $2.2 billion, aligning with analyst projections. For the full year, Equinix anticipates FFO in the range of $34.81 to $35.22 per share, with revenues expected between $8.75 billion and $8.79 billion.
Analyst Expectations and Ratings
For the fiscal year ending in December, analysts forecast a 3.3% decline in EQIX’s FFO to $31.06 on a diluted basis. Notably, Equinix has a solid record of earnings surprises, beating consensus estimates in all four quarters thus far.
Among the 26 analysts monitoring EQIX stock, the consensus rating is a “Strong Buy,” reflecting 20 “Strong Buy” recommendations, one “Moderate Buy,” and five “Holds.” This outlook appears more bullish than two months earlier, when only 19 analysts had rated it as a “Strong Buy.”
Price Target Insights
On November 20, Stifel Financial Corp. (SF) analyst Erik Rasmussen raised the price target for Equinix from $995 to $1,080, maintaining a “Buy” rating. Following discussions with Equinix management at the Nareit REITworld conference, Rasmussen expressed confidence in the company’s strong focus on AI and impressive results.
Currently, EQIX shares trade above the mean price target of $909.18, yet the highest price target of $1,085 indicates a potential upside of 10.8%.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any securities mentioned in this article. All information and data in this report are for informational purposes. For further details, please consult the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
