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Equinix downgraded to Peer Perform on valuation at Wolfe Research

Wolfe Research last night downgraded Equinix (EQIX) to Peer Perform from Outperform without a price target The firm expects the company’s earnings to show “predictable growth rather than dynamic change” given steady pricing growth in the main retail product type. Equinix now trades at a 27% premium to the group, versus an historical average premium of 16%, the analyst tells investors in a research note. Given the premium the company currently has to real estate investment trusts, further near term multiple expansion could be challenging, contends Wolfe.

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