Saturday, December 11, 2010

Benchmark Sees Strong Outlook On Equinix


>>Benchmark has published a research report on Equinix Inc. as the company has a solid growth outlook and rising sector values, according to Benchmark.

In the report, Benchmark writes "Equinix has a recurring revenue model with solid prospects for sustained growth. Equinix' communications real-estate service enables its customers to save money while outsourcing the location of their servers and related equipment. In addition, Equinix offers efficient connectivity with its tenants' operating partners. We forecast 2011 revenue of $1.5 billion for 16% y/y organic growth. Our EBITDA projection of $678 million reflects 19% organic growth. Management has consistently invested in data center builds citing strong demand trends. 2011 capex guidance, however, indicates a slowing in build plans and could unlock free cash flow. Our current estimates of 2011 recurring and after all capex FCF are $8.86 (10% yield) and $1.70 per share."

Benchmark maintains its Buy rating and $95 price target.

No comments: