Equinix short report resurfaced prior short views, says BMO Capital

BMO Capital says Hindenburg Research short report on Equinix yesterday resurfaced prior short views on the sector. The analyst disagrees with the “rehashed cloud risk thesis” and says that while Equinix “was perhaps aggressive” on its recurring capex definition, it does not seem unreasonable, with the potential risk that valuation gets slightly more expensive. The firm views the claim of overselling power as most concerning and admits it lacks visibility. While not surprised by the initial stock reaction, BMO remains constructive on Equinix’s long-term opportunity. It keeps an Outperform rating on the shares with a $965 price target.