Equinix Says It's Too Early For AI Projections: Analyst Changes Bullish Rating

Shares of Equinix Inc EQIX tanked in early trading on Thursday, a day after the company held a disappointing analyst day.

Management’s guidance, released during the company’s latest analyst day, suggested a deceleration from current elevated levels, according to Oppenheimer.

The Equinix Analyst: Timothy Horan downgraded the rating for Equinix from Outperform to Perform, while keeping the price target unchanged at $768.

The Equinix Thesis: Investors were particularly disappointed with the analyst day as they expected “to hear confirmation that AI would mark a new growth inflection point,” Horan said in the downgrade note.

Check out other analyst stock ratings.

Instead, management said it was “still too early” for forecasts, while warning of opex and capex remaining elevated, the analyst stated.

“Positively, long-term fundamentals remain healthy, and EQIX's guided 8–10% per year revenue growth to ~$12B by 2027 would normally be viewed as stellar in isolation, but low vs. 1Q23's +16% CC and '23E's 14–15% CC, admittedly boosted by energy pass-throughs,” he further wrote.

EQIX Price Action: Shares of Equinix had declined by 2.63% to $747.80 at the time of publishing Thursday.

Read Next: Nasdaq Rises 70 Points; Aeglea BioTherapeutics Shares Spike Higher

Photo: Shutterstock