Tuesday, July 10, 2012

Equinix (EQIX) Initiated At 'Buy' By Deutsche Bank, $225 PT

from www.istockanalyst.com/

>>Feldman said his bullish view is based on two key factors. A positive outlook for global data center demand. As the only truly global provider of retail colocation facilities, EQIX seems well positioned to benefit from an outsourcing trend driven by rapid IP traffic growth, and from favorable pricing due to the deep ecosystems in its IBXs.
Despite EQIX's outperformance year-to-date, current valuation does not appear to price-in any upside from a REIT conversion, which the analyst views as likely in 2014. In other words, he sees attractive upside if EQIX converts and limited downside if it does not.

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