Equinix shares rise on prospects of improving domestic growth, stock upgraded

Equinix shares rise on improving domestic growth

PHILADELPHIA — Shares of Equinix Inc. rose Wednesday after an analyst upgraded the stock on prospects that domestic revenue growth is improving and the risk to the company’s business from the European financial crisis is becoming more clear.

THE SPARK: Citi analyst Michael Rollins upgraded the data center service provider to “Buy” from “Hold.”

THE BIG PICTURE: Demand for shared data centers — where different customers share network, servers and storage equipment that connect to telecommunications and other networks — remains “solid,” the analyst said.

THE ANALYSIS: Rollins said checks into the sector point to an improvement in U.S. revenue growth going into the second half of the year. The impact from the European crisis is becoming better understood. Moreover, Equinix’s share price doesn’t reflect its future growth prospects, he said.

SHARE ACTION: Shares of Equinix, based in Foster City, Calif., rose $2.22, or 2.7 percent, to close Wednesday at $83.10.