BMO Reaffirms Bullish View on Equinix (EQIX) amid Strong Operational Performance
Equinix, Inc. (NASDAQ:EQIX) is included among the 14 Best Real Estate Stocks to Buy According to Hedge Funds.
On February 12, BMO Capital raised its price recommendation on Equinix, Inc. (NASDAQ:EQIX) to $1,050 from $925. It maintained an Outperform rating on the stock. The firm said its updated view reflected stronger-than-expected 2026 guidance. The analyst pointed to accelerating momentum across the business. Demand remained strong, with bookings growth reaching 42%. Cabinet additions also stayed healthy, reinforcing confidence in the company’s outlook.
A day earlier, on February 11, Equinix projected full-year revenue above market estimates. The forecast reflected rising demand tied to artificial intelligence, which has increased the need for data center capacity. Shares rose more than 6% in extended trading following the announcement. Companies continue to invest heavily in generative AI, and the trend has increased demand for specialized data centers, which has directly benefited Equinix.
For 2026, the company expects revenue between $10.12 billion and $10.22 billion. This came in above estimates of $10.07 billion, according to LSEG data. Equinix also expects first-quarter revenue between $2.50 billion and $2.54 billion, ahead of estimates of $2.46 billion. The company has continued expanding its footprint. It invested in new data centers in growing markets such as Chennai, India, and Jakarta, Indonesia, aiming to meet rising demand.
In the fourth quarter, Equinix reported revenue of $2.42 billion, slightly below estimates of $2.46 billion. The company said results were modestly affected by the timing of a leasing transaction tied to one of its sites. That transaction is now expected to close in early 2026.
Equinix, Inc. (NASDAQ:EQIX) operates as a digital infrastructure company. Its platform includes International Business Exchange (IBX) and xScale data centers across the Americas, Asia-Pacific, and Europe, the Middle East, and Africa. It also provides interconnection services, digital solutions, and consulting and support to help businesses connect and scale their operations.
While we acknowledge the potential of EQIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Disclosure: None.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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