Data center operator Equinix climbs on Q2 beat-and-raise
EQIX•Forecast raised as brokers lift price targets
Equinix raised its 2026 AFFO outlook to $42.69-$43.29 from prior guidance of $42.31-$43.11.
Jefferies said in a note that, more importantly, EQIX lifted its AFFO 2027-2029 growth outlook to 9%-12% from 5%-9%, "reflecting robust enterprise demand fueling bookings as broad-based AI and cloud needs spur deployments".
At least six brokers raised their price targets, including Jefferies ($1,340 from $1,300) and JP Morgan ($1,300 from $1,200).
Twenty-three of 30 brokers rate the stock "strong buy" or "buy", six "hold"; median price target is $1,211.
EQIX shares are now up 37% year to date and far outpacing the 12.5% advance in the S&P 500 Real Estate sector .SPLRCR.
Equinix shares rise after Q2 results top estimates
Data center operator Equinix EQIX.O shares were up 4.5% to $1,053.71 on Thursday after its quarterly results topped Wall Street's expectations and it boosted forecasts.
Redwood City, California-based REIT late Wednesday posted Q2 revenue of $2.63 billion, up 16% year over year, topping the consensus view of $2.58 billion, per LSEG data.
Adjusted funds from operations (AFFO) came in at $11.78 per share; analysts had modeled $11.26 per share.
The company said annualized gross bookings grew 23% year over year, contributing to a record backlog.
