>>However, Clayton F. Moran, SVP and Senior Analyst at The Benckmark Company, says that part of Equinix’ downward revision to its second-half guidance last week is due to softness in the Switch & Data portfolio.
“The pipeline of new business has not converted to revenue as quickly as Equinix expected, so initial results from this acquisition are poor, explains Moran, who, despite EQIX’s stock selloff, retains a “buy” rating on the company.
“While we were alarmed at the miss and the explanation, we view the stock selloff as disproportionate,” Moran said. “Macro drivers remain intact, but with a management credibility issue, this stock is likely to linger near term. Our new price target is $83 per share.“
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