Enterprise Colocation Expertise Offer Fundamental Strength to Equinix (EQIX)
Equinix Inc. (NASDAQ:EQIX) is one of the most favored real estate investment trusts according to Hedge Funds.
On January 12, Bank of America Securities analyst Michael Funk maintained his Buy rating on Equinix Inc. (NASDAQ:EQIX) and raised his target price to $950. His estimates lead to an upside potential of 18.5% for investors.
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Funk’s price target incorporates a forward FFO multiple of 24x, which offers a significant premium over a 19x multiple for the wider REIT sector. He has an optimistic view on Equinix Inc. (NASDAQ:EQIX), based on the company’s enterprise colocation expertise, where it is a market leader. The company also carries a relatively lower amount of leverage and is well-positioned to capitalize on “AI inferencing demand.”
On January 6, Benjamin Soff from Deutsche Bank initiated his coverage on Equinix Inc. (NASDAQ:EQIX). He assigned a Buy rating with a price target of $915, yielding over 14% upside. He cited Equinix as a “major beneficiary” of AI-linked developments and expanding demand for digital infrastructure. Such digital economy demand drivers, along with AI-related tailwinds, make for a compelling case for Equinix Inc. (NASDAQ:EQIX).
Equinix Inc. (NASDAQ:EQIX) operates an interconnected ecosystem of specialized data centers and digital infrastructure, which it leases out to enterprise clients and cloud service providers. Its investment portfolio is concentrated across global assets, and the company also leverages AI capabilities to offer an efficient digital and interconnection experience.
While we acknowledge the potential of EQIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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