NEW YORK (TheStreet) -- Equinix (EQIX) has been upgraded to "outperform" from "perform" with a $210 price target, Oppenheimer said Tuesday. The firm said the revision was a valuation call as the stock is down 12% in recent weeks.
Separately, TheStreet Ratings team rates EQUINIX INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EQUINIX INC (EQIX) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.1%. Since the same quarter one year prior, revenues rose by 11.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for EQUINIX INC is currently very high, coming in at 71.07%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, EQIX's net profit margin of 8.00% significantly trails the industry average.
- EQUINIX INC has improved earnings per share by 31.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EQUINIX INC reported lower earnings of $1.84 versus $2.57 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus $1.84).
- Currently the debt-to-equity ratio of 1.69 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, EQIX has managed to keep a strong quick ratio of 1.55, which demonstrates the ability to cover short-term cash needs.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market on the basis of return on equity, EQUINIX INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: EQIX Ratings Report