Equinix Stock Deemed Fully Valued By Analyst: Anticipated AFFO Earnings Deceleration Poses Risk
Portfolio Pulse from Nabaparna Bhattacharya
Truist Securities analyst Anthony Hau has downgraded Equinix, Inc. (NASDAQ:EQIX) from Buy to Hold, and lowered the price target to $815 from $870. The analyst anticipates a deceleration in adjusted funds from operations (AFFO) earnings growth in 2024 due to various factors. There is potential for EQIX to grow into its valuation multiple, but the analyst believes there is a greater downside risk to the valuation.
June 27, 2023 | 5:56 pm
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NEGATIVE IMPACT
Equinix has been downgraded by Truist Securities due to anticipated deceleration in AFFO earnings growth. The price target has been lowered, indicating potential downside risk.
The downgrade by Truist Securities and the lowering of the price target indicate a potential downside risk for Equinix. The anticipated deceleration in AFFO earnings growth in 2024, due to factors such as tough comparisons, interest expenses, higher CapEx, and a possibly deteriorating economic outlook, could negatively impact the stock's performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100