Scotiabank downgrades Equinix despite raising price target amid strong AI-driven growth and high valuation.

Scotiabank downgraded Equinix stock from Sector Outperform to Sector Perform while raising its price target from $997 to $1,050, reflecting respect for the company's growth but caution on valuation after a 33% rally. Equinix, the largest global data center operator, benefits from strong AI demand, with 60% of its largest deals driven by AI workloads. The company projects 10-11% revenue growth for 2026 but carries high debt and negative free cash flow due to heavy capital investment. Investors should watch upcoming Q1 2026 earnings for confirmation of growth momentum before increasing positions.