Piper Jaffray on Why Equinix Remains at the Top

“Post the Fall 2010 miss, Equinix's (NASDAQ: EQIX) stock has gone from boom to bust to boom again,” Piper Jaffray wrote in a report. “While some might argue that the stock is fairly valued given that it has recovered to near pre-miss levels, we believe that additional upside remains.

“Business trends have improved since last year, with global outsourcing trends continuing and expanding opportunities in cloud computing and SaaS presenting themselves. To justly value Equinix, we think investors need to look at recurring free cash flow, which suggests meaningful upside from current levels.”

Equinix closed Thursday at $101.02.