UPDATE: Piper Jaffray Downgrades Equinix on Balanced Risk/Reward

In a report published Thursday, Piper Jaffray analyst Andrew J. Nowinski downgraded the rating on Equinix (NASDAQ: EQIX) from Overweight to Neutral, and lowered the price target from $215.00 to $210.00.

In the report, Piper Jaffray noted, “Equinix reported solid Q4 results, modestly ahead of the Street and mgmt's guidance. While guidance for 2014 was essentially in line with consensus, we believe the risk/reward profile is not favorable enough to warrant an Overweight rating. Based on our recurring FCF estimates, we believe the market is already pricing in a favorable REIT conversion ruling, with shares trading at a modest premium to other REITs. Moreover, if the company does not receive a positive ruling, we see significant downside in the shares, as the stock would likely trade in line with the non-REIT data center group. Therefore, we are downgrading shares to Neutral and lowering our price target to $210 (prev $215).”

Equinix closed on Wednesday at $192.62.