Auriga Initiates Coverage on Equinix (EQIX) with a Hold

from StreetInsider.com:

>>Auriga Initiates Coverage on Equinix (EQIX) with a Hold

Auriga initiates coverage on Equinix (Nasdaq: EQIX) with a Hold. Price target $77.

Auriga analyst says, "EQIX is a well-managed company and the leading pure-play vendor in data center services, one of the hottest secular growth stories in technology. We are also confident EQIX will exceed Street EBITDA expectations in 2009-10 and thus see some upside potential for the stock. That said, EQIX has had a big run and we question how much additional multiple expansion the company might see in the near-to-medium term."

"Market Trends Still Healthy. Data center services are continuing to benefit from greater computing complexity, broadband proliferation, IT outsourcing, and higher end-market demand for more intensive bandwidth services. Moreover, sector supply/demand characteristics remain favorable. While EQIX is certainly not immune to the economic recession, we do not expect to see a material weakening in demand this year."