Bernstein's Rating and Price Target#
Bernstein SocGen Group has reiterated an Outperform rating for Equinix (NASDAQ:EQIX) and set a price target of $1,222. Currently, the stock is trading at $1,083, indicating an 11% potential upside according to analyst consensus. However, some data suggests that the company may be overvalued, as it is trading close to its 52-week high of $1,129.
Key Growth Driver: Interconnection#
A significant focus for Equinix is its interconnection segment, which accounts for about 17% of the company’s revenue. This area is noted for contributing high-margin growth, which means it generates a substantial profit relative to its costs. Recently, Equinix has expanded its infrastructure by adding over 110 neocloud nodes, enhancing its service capabilities.
Capacity Expansion and Churn Rates#
Equinix is also ramping up its capacity, planning to build approximately 5 gigawatts, a significant increase from the 2 gigawatts expected last summer. The company has accelerated about 20% of its retail builds ahead of schedule. In terms of customer retention, known as churn, the first quarter saw a rate of 1.7%. The company is now targeting a churn rate of around 2%, slightly lower than its previous range of 2.0% to 2.5%.
Earnings Report and Analyst Reactions#
In its first-quarter earnings report for 2026, Equinix reported $2.4 billion in revenue, an 8% increase from the previous year. Although earnings per share were slightly below expectations at $4.2 compared to the anticipated $4.3, the company raised its guidance for 2026. Analysts have responded positively, with Raymond James upgrading Equinix to a Strong Buy and increasing its price target to $1,250, while Cantor Fitzgerald and Scotiabank have also adjusted their targets upward. These developments indicate a generally favorable outlook for Equinix, despite the minor earnings miss.