Research Alert: CFRA Upgrades Rating On Shares Of Equinix, Inc. To Strong Buy From Hold

11:55 AM EDT, 03/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We find the current share price at an attractive entry point. Our $985 target price (consensus $1,106) is based on forward P/FFO of 36.5x, a premium to direct peers in the fast-growing data center market given EQIX market leadership. Using another valuation metric, we see current share price at 20.5x TEV/EBITDA on a 2025 EBITDA estimate of $4.41B. Our target price equates to 24.1x TEV/EBITDA compared to the three- and five-year historic averages at 29.6x and 29.2x, respectively. We keep our FFO estimates at $27.00 in 2025 and $29.30 in 2026. We think EQIX is in the epicenter of technology markets as a global provider of data centers for AI and cloud computing. Last October, EQIX announced plans to nearly triple the capital invested in its xScale data center portfolio, with an agreement to form a $15B joint venture with the Canada Pension Plan Investment Board. EQIX expects to build state-of-the-art xScale facilities on multiple campuses. Industry fundamentals remain favorable with supply constraints.

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