Increased Scale Leaves EQIX In Dominant Market Position

Analysts at Oppenheimer & Co upgrade Equinix Inc EQIX from "perform" to "outperform," while reducing their estimates for the company. The target price for EQIX is set to $115. According to Oppenheimer & Co, “Our more constructive stance on EQIX shares is predicated on the following considerations: 1) improving visibility into 2H10/2011 growth trajectory with close of SDXC acquisition; 2) faster-than-expected realization of synergy benefits, generating margin expansion in 4Q10 and beyond; 3) increased scale leaves EQIX in a dominant market position and should aid pricing power; 4) underlying colo market demand/supply fundamentals remain relatively healthy; and 5) strong balance sheet should allow EQIX to access expansion financing at attractive rates.” Oppenheimer has lowered its EPS estimates for 2010 and 2011 from $2.56 to $2.09 and from $3.41 to $3.15, respectively. More Analyst Ratings here