Equinix initiated with an Outperform at Scotiabank

Scotiabank initiated coverage of Equinix with an Outperform rating and $856 price target. The analyst thinks the data center space “is still in its early innings of growth.” Demand is currently outstripping supply, but even if we see demand digestion ramping up in 2024, over the long term, there will be significant growth opportunities left for key operators well positioned to benefit from a more interconnected world, the analyst tells investors in a research note. Within the telecom, media, and technology infrastructure universe, Scotiabank seeks operators with a visible path for growth, steady and dependable with long-duration contracts, strong balance sheets that are less prone to the effects of rising rates and positioned to capitalize on future M&A opportunities.