Equinix Analysts Bullish on Stock Despite Recent Underperformance

Equinix, Inc. (EQIX) operates as a real estate investment trust, investing in interconnected data centers. The company's shares have underperformed the broader market over the past year, declining 3.4% compared to the S&P 500 Index's 15.2% rally. Despite this, analysts expect EQIX's FFO per share to decline 3.3% for the current fiscal year. The consensus rating among 30 analysts is a "Strong Buy," with a mean price target of $962.08 and a potential upside of 21.7% from current levels.

Equinix, Inc. (EQIX), a real estate investment trust (REIT) specializing in interconnected data centers, has experienced underperformance relative to the broader market over the past year. The company's shares have declined 3.4%, while the S&P 500 Index ($SPX) has rallied by 15.2% [1]. Despite this, analysts remain bullish on EQIX, with a consensus rating of "Strong Buy" among 30 analysts covering the stock [1].

The company's second-quarter (Q2) earnings report, released on July 30, showed earnings per share (EPS) of $9.91, surpassing Wall Street expectations of $9.19. Revenue of $2.3 billion also met forecasts. For the full year, EQIX expects FFO per share in the range of $37.67 to $38.48, with revenue projected between $9.2 billion and $9.3 billion [1].

Analysts expect EQIX's FFO per share to decline 3.3% for the current fiscal year, ending in December. However, this decline is expected to be less severe than the company's underperformance against the broader market and the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) [1]. The ETF has gained about 3.5% over the past year and 4.7% year-to-date (YTD), outperforming EQIX's double-digit losses over the same period [1].

The mean price target of $962.08 represents a 21.7% premium to EQIX's current price levels, with the Street-high price target of $1,218 suggesting an ambitious upside potential of 54.1% [1]. Several analysts have recently adjusted their price targets and ratings for EQIX. For instance, Mizuho Financial Group, Inc. (MFG) maintained a "Hold" rating with a price target of $804, while Barclays increased its target price from $798.00 to $804.00, indicating a potential upside of 3.67% from the current price [2].

Despite the recent underperformance, EQIX's strong fundamentals and the growing demand for data centers continue to attract analyst optimism. The company's digital infrastructure platform enables organizations to scale with agility and deliver world-class experiences, supporting their sustainability goals [2]. Additionally, the company's strong track record of beating consensus estimates and the high ownership of its stock by institutional investors, including hedge funds, provide further support for the bullish outlook [1, 2].

References:
[1] https://www.barchart.com/story/news/34450180/are-wall-street-analysts-bullish-on-equinix-stock
[2] https://www.marketbeat.com/instant-alerts/equinix-nasdaqeqix-stock-price-expected-to-rise-barclays-analyst-says-2025-08-20/