Analyst: This Red-Hot Data Center REIT Will Rise Another 14%

Data center real estate investment trust (REIT) Equinix Inc (NASDAQ:EQIX) today received some bullish commentary from analysts at Canaccord Genuity.

The firm reiterated its Buy rating on Redwood City, CA-based EQIX and lifted its price target from $390 to $420. That new target suggests a 14% upside to the stock’s Thursday closing price of $367.75.

Canaccord cited several reasons for the bullish view, including:

• Updated estimates to reflect +17% and +25% growth y/y.
• Management’s recent Investor Day provided broad guidance for >13% AFFO/sh and >12% adjusted EBITDA CAGR through 2020.
• The stock’s attractive valuation relative to a level of sustainable earnings growth that is rare among large-cap REITs.
• 2017 year-over-year growth will benefit from synergies related to recent Telecity and Bit-Isle acquisitions.

Equinix shares were unchanged at $367.75 in premarket trading Friday. The stock has risen 22% year-to-date, tripling the return of the S&P 500 index in the same time period.

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