Deutsche Bank recently increased its price target on Equinix Inc (NASDAQ:) to $910 from $880, while maintaining a Buy rating on the stock. The firm expressed confidence in Equinix’s growth prospects despite current economic challenges.
According to the analyst from Deutsche Bank, Equinix is poised for sustained growth with an expected compound annual growth rate (CAGR) of 9% for adjusted funds from operations (AFFO) per share from 2024 to 2027. Additionally, the stock offers a 2% dividend yield that is projected to increase in double digits annually.
Equinix’s shares are currently trading at a multiple of 21.6 times the projected 2025 price to AFFO. The new price target implies a 13% total return potential, with the possibility of higher returns if the economic situation improves.
Deutsche Bank remains positive on Equinix’s outlook, considering it to have the best combination of top-line and bottom-line growth in the communication infrastructure sector. Despite short-term revenue challenges, Equinix’s long-term growth trajectory remains strong.
The revised price target by Deutsche Bank reflects its confidence in Equinix’s ability to deliver double-digit annual returns. The Buy rating highlights Equinix’s exceptional growth and return potential compared to its peers.
In recent developments, Equinix reported an 8% year-over-year revenue increase for the second quarter, reaching $2.2 billion. The company’s xScale program and focus on AI have attracted significant investments, contributing to its strong performance.
TD Cowen has also adjusted its price target for Equinix to $865 from $859, maintaining a Buy rating on the stock. Despite some disappointing KPIs, the firm is optimistic about Equinix’s financial outlook and record bookings for the second quarter.
Equinix remains confident in its strategic direction and value delivery to shareholders amidst macroeconomic challenges and regulatory investigations. These recent developments underscore Equinix’s resilience and growth potential.
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