5. Equinix, Inc. (NASDAQ:EQIX)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 56
Equinix, Inc. (NASDAQ:EQIX) is a retail provider of data centers, allowing enterprise tenants to house their servers and networking equipment in a co-located environment. CFRA analyst Kenneth Leon upped the company’s stock from “Hold” to “Strong Buy,” setting the price objective to $985.00. The company has a market leadership in a rapidly expanding industry. The analyst believes that Equinix, Inc. (NASDAQ:EQIX) remains at the core of technology markets and serves as a global provider of data centers essential for AI and cloud computing services. Furthermore, the analyst noted that industry fundamentals remain favorable for the company, with supply constraints in the market, exhibiting a healthy outlook for growth and performance.
Elsewhere, Wolfe Research upped the company’s stock from “Peer Perform” to “Outperform.” The firm’s favorable outlook stems from Equinix, Inc. (NASDAQ:EQIX)’s risk-adjusted growth profile. As per the analysts, the premium valuation is justified given the growth potential. Wolfe Research noted the strategic position of Equinix, Inc. (NASDAQ:EQIX) in the market and its capability to capitalize on the increasing need for data center services. Overall, the upgraded rating and new price target showcase its future performance and potential to deliver healthy returns.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“In the most recent quarter, the shares of Equinix, Inc. (NASDAQ:EQIX), the premier global operator of network-dense, carrier-neutral data centers, performed well following solid third quarter results. We continue to be optimistic about the long-term growth prospects for the company due to its interconnection focus among a highly curated customer ecosystem, irreplaceable global footprint, strong demand and pricing power, favorable supply backdrop, and evolving incremental demand vectors such as AI. Equinix has multiple levers to drive outsized bottom-line growth with operating leverage. Equinix should compound its earnings per share at approximately 10% over the next few years and we believe the prospects for outsized shareholder returns remain compelling from here given the superior secular growth prospects combined with a discounted valuation.
In the most recent quarter, we acquired additional shares of Equinix, Inc., the premier global operator of network-dense, carrier-neutral data centers
We continue to be optimistic about the long-term growth prospects for the company due to its interconnection focus among a highly curated customer ecosystem, irreplaceable global footprint, strong demand and pricing power, favorable supply backdrop and evolving incremental demand vectors such as AI. The company has multiple levers to drive outsized bottom-line growth with operating leverage. Equinix should compound its earnings per share at approximately 10% over the next few years and we believe the prospects for outsized shareholder returns remain compelling from here given the superior secular growth prospects combined with a discounted valuation.”
