Citizens has reaffirmed a Market Outperform rating on Equinix shares (NASDAQ: EQIX), maintaining a $1,200 price target that implies roughly a 26% upside from the stock's then-current trading level of $951.97. The equity was trading close to its 52-week high of $992.90 and had posted a notable 9.73% gain over the prior week.
The research firm revised its forecast assumptions after Equinix released fourth-quarter 2025 earnings last week. Citizens highlighted several takeaways from the company’s report: accelerating demand driven in part by AI-related workloads, record bookings during the quarter, and continued evidence of operating leverage across the business.
On a topline basis, Equinix reported annual revenue of $9.26 billion, representing growth of 5.99% year over year. Citizens pointed to these trends as supporting its positive view on the firm’s longer-term growth trajectory. At the same time, an InvestingPro analysis referenced by Citizens shows the stock trading at a relatively elevated price-to-earnings multiple of 69.14.
Quarterly details and guidance
The company’s fourth-quarter results contained mixed elements. Equinix missed expectations in that period due to a delayed large deal, but it also recorded a bookings total of $474 million, a 42% increase year over year. Monthly recurring revenue rose about 10% during the quarter. Management provided guidance for 2026 revenue in a range from $10.12 billion to $10.22 billion, which is above the cited analyst estimate of $10.07 billion. The company also projected a 10.5% increase in adjusted funds from operations per share for 2026, an improvement on prior guidance.
Citizens’ reaffirmation followed a broader positive reception from other sell-side analysts. Stifel raised its price target to $1,075 and kept a Buy rating; TD Cowen raised its target to $1,123 and likewise maintained a Buy; and Scotiabank lifted its target to $997, citing Equinix’s strong start to 2026 and an expected acceleration in earnings. Citizens’ Market Outperform call with a $1,200 target echoed that tone of optimism.
Why the firm remains constructive
Citizens emphasized that the combination of sustained bookings momentum, AI-driven demand patterns, and evidence of operating leverage underpin its confidence in Equinix’s growth path. The data center operator’s record bookings in the quarter and the contribution from AI workloads were singled out as material drivers of near-term demand.
At the same time, Citizens and other analysts are balancing that view against valuation considerations, as reflected in the high P/E noted in the InvestingPro metric cited by Citizens.
The developments documented in the quarter and the guidance for 2026 have been received positively by multiple analysts, reinforcing a broadly constructive outlook for Equinix within the data center sector.