Citigroup Comments On Equinix's Latest NY-Expansion Highlights

Citigroup has published a research report on Equinix EQIX after recently meeting with company management that highlighted another New York Metro expansion.

In the report, Citigroup writes "Our takeaways from our walking tour of NY-4 included: 1) the first two phases of NY-4 seem booked at a 90%-plus rate, while we believe the third phase is off to a good start (opened in mid-2010) with roughly 30-35% billing and 45-55% booked or reserved from our observations; 2) Equinix highlighted favorable demand trends from its financial vertical as financial exchanges are a substantial contributor to the demand and occupancy of the facility; 3) we believe the increasing utilization of NY-4 is likely to lead to another capacity expansion in a nearby facility in which the company has already signed a lease during 2010 for 325k square feet."

Citigroup maintains its Hold rating and $98 price target.

Equinix closed yesterday at $84.16.