HSBC downgrades Equinix pending clarity on Hindenburg accusations

HSBC downgraded Equinix to Hold from Buy with an unchanged price target of $900. The company today was accused by Hindenburg Research of accounting manipulation to boost adjusted funds from operations, the analyst tells investors in a research note. The firm believes Equinix’s capital expenditure classification debate is likely to continue while the power capacity accusation, if true, “could have major consequences.” HSBC awaits more clarity on the accusations and citing limited upside potential, downgraded the shares. Equinix is down 5% to $805.89 in early afternoon trading.