What happened

Shares of Equinix (EQIX -1.66%) leaped 24.6% in November, according to data provided by S&P Global Market Intelligence. Powering the data center REIT's surge was its third-quarter results, which led several analysts to boost their price targets on the stock. 

So what

Equinix reported strong third-quarter results in early November. The REIT's quarterly revenues rose 10% to $1.8 billion. That marked its 79th consecutive quarter of revenue growth, which Equinix claims is the longest streak for any company in the S&P 500. It also delivered its sixth consecutive quarter of record channel bookings. Those numbers showcase that demand for data center solutions remains robust. 

The company also boosted its outlook for the year despite an increasingly challenging macroeconomic environment. It sees its adjusted FFO coming in $52 million ahead of its prior forecast, partially offset by an additional $17 million impact for foreign exchange. That would see the REIT grow its adjusted FFO by about 10% this year, or 8% per share. 

Most analysts loved what they saw from Equinix in the quarter, leading several to boost their price targets. For example, RBC Capital analyst Jonathan Atkin raised that firm's price target from $668 to $720 a share while keeping its outperform rating. The analyst noted that Equinix posted solid results and healthy bookings. Further, the analyst believes the company's strong brand and positioning give it pricing power over peers. 

Meanwhile, Deutsche Bank analyst Matthew Miknam raised his price target from $635 to $680 while keeping the bank's buy rating. The analyst boosted his price target following the REIT's strong third-quarter report, where it continued to deliver record bookings and improved pricing. 

In other news last month, Equinix entered Malaysia. The REIT will initially invest $40 million to build a new data center that should start operations in early 2024. Once complete, it will grow the company's portfolio to 245 data centers across 32 countries, assuming it doesn't acquire any more in the meantime. 

Now what

Demand for data center solutions remains strong, despite growing macroeconomic concerns. Companies continue to digitize their businesses, which is driving increased need for storage capacity. That trend should enable Equinix to continue growing its revenue and earnings in the future. While the stock rallied sharply last month, it's still down about 19% on the year. Because of that, it still looks like an attractive investment, given the growth that remains ahead.