Analyst Note| Matthew Dolgin, CFA |
Equinix’s first quarter was good, delivering the strong sales growth to which we’ve become accustomed. Equinix is perfectly positioned for the ongoing digital transformation of businesses globally and the greater needs they have for data and interconnection. With another record quarter of net bookings and momentum picking up in the relatively newer Equinix Metal and Equinix Fabric offerings, Equinix raised its 2022 sales outlook by more than 1%, though half of the increase is the result of the recent MainOne acquisition that expanded Equinix’s presence into Africa. After adjusting our 2022 forecast but making no material changes to our long-term sales or profit projections, we raise our fair value estimate to $560 from $550.