Equinix price target raised to $850 from $750 at BofA

BofA raised the firm’s price target on Equinix to $850 from $750 and keeps a Buy rating on the shares after the company updated its long-term financial guidance for 2023-2027 at its analyst day, boosting annual revenue growth expectations to 8%-10% from 7%-9% and reiterating annual 7%-10% AFFO per share growth. While the company omitted its previous 50% 2025 EBITDA margin target, Equinix said it believes 50% EBITDA margins are “achievable” over time but would rather create value via continued investment in SG&A, notes the analyst, who adds that Equinix remains BofA’s top data center pick given its strong balance sheet, demonstrable pricing power, and call option on the emerging incremental AI demand opportunity.