Tuesday, November 22, 2011

Wells Fargo Starts Equinix (EQIX) at Outperform

from www.streetinsider.com:

>Wells Fargo initiates coverage on Equinix with an Outperform. PT range $123-$131.

Wells analyst says, "In our opinion, the network-neutral data center space represents a safe, derivative play on the continued growth of IP and Internet traffic. Near term, we think retail pricing is relatively stable and that demand trends remain strong. As a result, we think EQIX has the potential to exceed EBITDA estimates in 2012. Additionally, expansion initiatives and its continued ability to scale margins could provide a catalyst to EQIX shares longer term. Lastly, the potential to reallocate cash to shareholders and achieve positive FCF in 2013 should create an opportunity for multiple expansion. Introducing 2011E EBITDA/share est of $15.14 and 2012E of $17.54."

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