Equinix Downgraded to Sector Perform at Scotiabank
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- Scotiabank downgraded Equinix (EQIX) to Sector Perform from Sector Outperform, with the stock dipping 1.6% in late-morning Tuesday trading on the news
- The cut came after Equinix had significantly outperformed the S&P 500 year-to-date, with the article's framing indicating Scotiabank viewed the stock as getting ahead of earnings
- Equinix is identified in the source as a data center REIT, trading near $1,060 with a roughly $104.81 billion market cap, a 32.98x forward P/FFO multiple, and a 1.85% dividend yield
Why it matters: Scotiabank's move from Outperform to the rare neutral Sector Perform rating resets expectations on a data center REIT that has sprinted ahead of the S&P 500, trading at a steep 32.98x forward P/FFO. For income investors, the downgrade signals a key sell-side voice sees the run-up as overextended heading into the next earnings report.
