Citigroup Comments On Equinix's Latest NY-Expansion Highlights

Citigroup has published a research report on Equinix (NASDAQ: EQIX) after recently meeting with company management that highlighted another New York Metro expansion.

In the report, Citigroup writes "Our takeaways from our walking tour of NY-4 included: 1) the first two phases of NY-4 seem booked at a 90%-plus rate, while we believe the third phase is off to a good start (opened in mid-2010) with roughly 30-35% billing and 45-55% booked or reserved from our observations; 2) Equinix highlighted favorable demand trends from its financial vertical as financial exchanges are a substantial contributor to the demand and occupancy of the facility; 3) we believe the increasing utilization of NY-4 is likely to lead to another capacity expansion in a nearby facility in which the company has already signed a lease during 2010 for 325k square feet."

Citigroup maintains its Hold rating and $98 price target.

Equinix closed yesterday at $84.16.