The Bull Case For Equinix (EQIX) Could Change Following Aggressive Asia-Pacific Data Center Expansion – Learn Why

• In recent days, several banks including Citi, Deutsche Bank, Bank of America Securities, and Barclays reiterated or initiated positive coverage on Equinix, while the company continued expanding its global data center footprint across high-growth markets such as South Korea, India, Turkey, and the Philippines through acquisitions and new capacity.
• Together, this combination of favorable analyst sentiment and Equinix’s push into fast-growing Asia-Pacific and emerging markets has reinforced its role as a key global provider of digital infrastructure tied to AI, cloud, and broader digital transformation demand.
• We’ll now examine how Equinix’s expansion into high-growth Asia-Pacific data center hubs may influence its existing investment narrative and risk profile.

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Equinix Investment Narrative Recap

To own Equinix, you need to believe that its global data center network will remain central to AI, cloud, and interconnection demand, while heavy capital spending and high leverage stay manageable. The latest wave of mostly positive analyst ratings does not materially change the core near term catalyst, which is successful lease up of new capacity in Asia Pacific, or the key risk, which is funding that growth in a high debt and interest cost backdrop.

Among the recent developments, Barclays raising its price target on Equinix to US$870 while keeping an Equal Weight rating stands out, as it sits alongside a broader Strong Buy consensus and supports the existing catalyst of global expansion and higher density workloads. It also underlines how opinions on valuation and risk can differ even when analysts broadly agree that Equinix is a central player in digital infrastructure and AI related demand.

Yet behind the growth story, Equinix’s reliance on large capital projects and rising leverage introduces funding and execution risks that investors should be aware of…

Read the full narrative on Equinix (it’s free!)

Equinix’s narrative projects $11.4 billion revenue and $1.7 billion earnings by 2028. This requires 8.5% yearly revenue growth and an earnings increase of about $706 million from $994.0 million today.

Uncover how Equinix’s forecasts yield a $965.56 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community currently value Equinix between about US$762 and US$1,295, highlighting a wide range of expectations. As you weigh those views against Equinix’s capital intensive global build out, it is worth considering how differing growth and risk assumptions could shape long term outcomes for the business.

Explore 5 other fair value estimates on Equinix – why the stock might be worth just $761.68!

Build Your Own Equinix Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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