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Monday, Oct 26th

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MGI 360 Rating: Equinix - June 2013 Data Centers Services

Price : $995.00

Research Summary

We launch coverage of Equinix (EQIX) in the Data Center Services (DCS) market with an initial MGI 360 Rating of 69 out of 100 and a Positive outlook. We have a generally favorable view of Equinix as a viable provider of data center and colocation services.
The company has been able to clearly articulate its unique interconnect strengths and while there have been some rumblings amongst service provider customers that Equinix is becoming more difficult to do business with, there are few credible alternatives with a similar scope, reach and quality of service. EQIX has an aggressive plan for growth, a clear strategy and a capable leadership team. Our view is that the company will remain one of the leading options for enterprise and wholesale industry customers looking for data center, interconnect and colocation services. EQIX offerings are a particular fit for larger enterprises looking to cross-connect multiple public and private cloud services. Even with the company missing March 2013 analyst estimates by about 9%, overall longer term performance has been solid with company revenues and operating earnings nearly doubling since 2010 to just under $2Bil and $400 Million respectively. The company is sometimes mistaken by some institutional investors for a cloud provider and is compared to Rackspace, even though Equinix is primarily a supplier of data center space and services to numerous cloud IaaS and SaaS firms. Note: Peer ratings for other firms in the DCS space (Dupont Fabros, CyrusOne, Digital Realty Trust, Interaxion, and others) are not available at print time and will be forthcoming shortly. We expect to update the EQIX rating note and stack ranking once the scores for its peer group are completed. Equinix is a component of MGI Cloud 30 Index. IMPORTANT: This research note is not an offering or a recommendation to buy or sell securities of any kind. The opinions expressed are that of MGI Research, LLC and are for informational use only.  (c) 2013 MGI Research, LLC