Short Interest (as % of float): 26%
Average Analyst-Predicted Upside: 33%
Data center company Equinix (EQIX), which is down 15% year-to-date, has been much kinder to the shorts so far this year. One reason for the drop: The company reported a net loss in the most recent quarter and slashed its full-year revenue forecast.
Still, analysts don’t appear to be fazed. Currently, nine analysts rate the stock a “strong buy,” while another eight call EQIX a “buy.” In fact, Stifel and Deutsche Bank both reiterated their “buy” ratings in late July after second-quarter results came out — although they did lower their price targets. Meanwhile, Citi upgraded it, citing the lowered guidance as “more reasonable.” Even with the lowered price targets, analysts on average expect 33% upside for Equinix.
Still, despite the selloff, EQIX trades for nearly 44 times next year’s earnings, which is double the company’s expected long-term annual earnings growth. That could be more ammo for short sellers, who were sitting on roughly 12.7 million shares as of mid-August, or about 26% of the float.
As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.