>>Goldman Sachs maintained its Neutral rating on Equinix. At the same time, Goldman left its price target unchanged at $99, following a meeting with Steve Smith, Equinix's CEO. In a research report published today, Goldman stressed that Equinix's fundamentals remain healthy, leaving no reason to change its estimates.
In the report, Goldman states, "Management's commentary on fundamentals suggests demand remains strong across all verticals, and particularly within Cloud/IT, financials, and mobility. In addition, a significant portion of new supply is coming from wholesale providers (e.g. DLR), where competition with EQIX is fairly limited. Importantly, management is confident that churn is improving, with 8% guidance for 2011 implying sub-2% churn within the next few quarters."
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