Oppenheimer stays Outperform on Equinix after ‘erroneous’ short report

Oppenheimer keeps an Outperform rating on Equinix with a $950 price target hosting a meeting with Charles Meyers, CEO, and Keith Taylor, CFO. The Hindenburg Research short report repeated Jim Chanos’ unsuccessful arguments about cloud competition and overvaluation, and added new accusations of “accounting manipulation,” the analyst tells investors in a research note. The firm says Equinix management offered “reassuring transparency” at the meeting. The company criticized the “kitchen sink” nature of the short report, “including number inaccuracies,” such as claiming hyperscalers do not pay interconnect, says Oppenheimer. It calls the short report “erroneous” and continues to believe data center supply/demand will be constrained with demand outstripping supply for the foreseeable future.