BofA analyst Michael Funk has revised the price target for Equinix (EQIX, Financial), reducing it from $1,000 to $950, while maintaining a Buy rating on the stock. This adjustment follows Equinix’s recent analyst day. The shift was influenced by reduced guidance on AFFO per share and dividend growth, along with increased leverage for future expansion, which collectively impacted short-term market sentiment negatively.
Nonetheless, BofA remains positive about Equinix's long-term potential. The firm highlights strong anticipated growth in AI inference and robust customer demand as key factors supporting investment. Equinix is positioned as a significant beneficiary of ongoing secular growth in the AI sector, according to BofA's analysis.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Equinix Inc (EQIX, Financial) is $1,017.22 with a high estimate of $1,200.00 and a low estimate of $837.00. The average target implies an upside of 23.40% from the current price of $824.31. More detailed estimate data can be found on the Equinix Inc (EQIX) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Equinix Inc's (EQIX, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Equinix Inc (EQIX, Financial) in one year is $901.84, suggesting a upside of 9.41% from the current price of $824.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Equinix Inc (EQIX) Summary page.
EQIX Key Business Developments
Release Date: April 30, 2025
- Revenue: $2.2 billion, up 8% year-over-year, excluding power pass-through impact.
- Adjusted EBITDA Margin: Increased to 48% of revenues.
- AFFO per Share: Increased 9% year-over-year.
- Global Q1 MRR Churn: 2.4%, as expected.
- Interconnection Revenues: Grew 9% year-over-year on a normalized and constant currency basis.
- Total Interconnections: More than 486,000 deployed.
- Capital Expenditures: $750 million, including $26 million in recurring CapEx.
- 2025 Revenue Guidance Increase: Raised by $142 million.
- 2025 Adjusted EBITDA Guidance Increase: Raised by $85 million.
- 2025 AFFO Guidance Increase: Raised by $69 million.
- 2025 CapEx Expectation: Between $3.4 billion and $3.7 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Equinix Inc (EQIX, Financial) delivered better-than-expected financial metrics, including revenues, adjusted EBITDA, and AFFO, leading to raised guidance for these metrics.
- The sales team improved customer momentum, deal conversion, and shortened deal cycles while maintaining favorable pricing.
- Equinix Inc (EQIX) experienced strong recurring revenue growth, driven by the impact of second-half 2024 bookings.
- The company saw significant AI wins, including deployments with NVIDIA DGX Superpod and Groq, enhancing its position in the AI infrastructure market.
- Equinix Inc (EQIX) continues to expand its global footprint with 56 major projects underway across 33 metros in 24 countries, including 12 xScale projects.
Negative Points
- Lower xScale leasing and fit-out fees offset strong recurring revenue growth in the first quarter.
- The company is closely monitoring the macroeconomic environment, with tariffs posing a concern for many customers.
- Equinix Inc (EQIX) experienced some unanticipated churn events, including a bankruptcy in EMEA, impacting cabinet billing.
- Nonrecurring revenues are expected to decrease by $38 million in Q2, largely due to xScale.
- The company faces capacity constraints, requiring accelerated builds to meet customer demand, which could impact pricing dynamics.
