Equinix cut to Sector Perform at Scotiabank as stock gets ahead of earnings
Why it matters: Scotiabank's downgrade suggests Equinix's stock may be overvalued, potentially impacting investor sentiment.
- Equinix (EQIX) stock experienced a 1.6% dip in late morning trading following the downgrade.
- Scotiabank reduced its rating for Equinix from Sector Outperform to Sector Perform.
- The downgrade is attributed to Equinix's stock having significantly outperformed the S&P 500 year-to-date, indicating its valuation may be stretched ahead of its earnings report.
Scotiabank has downgraded data center REIT Equinix (EQIX) to Sector Perform from Sector Outperform, causing its stock to dip 1.6% in late morning trading. This adjustment comes after Equinix's stock significantly outpaced the S&P 500 year-to-date, with Scotiabank suggesting the stock's performance has gotten ahead of its upcoming earnings.
