Digital Realty: Strong Leasing and Raised Guidance Amid Cautious Hold Rating

In a report released yesterday, Michael Elias from TD Cowen reiterated a Hold rating on Digital Realty (DLR – Research Report), with a price target of $153.00.

Michael Elias has given his Hold rating due to a combination of factors including Digital Realty’s strong leasing performance in the first quarter of 2025 and the company’s raised guidance for the year. Despite these positive developments, Elias remains cautious, noting the mixed results of the quarter and the current valuation of the stock.
Additionally, while the demand for Digital Realty’s services remains robust, particularly in the enterprise and hyperscale segments, there are broader concerns about the macroeconomic environment that could impact future growth. The formation of a new U.S. hyperscale data center fund is a positive step, providing flexibility in capital expenditures, but Elias believes that these factors are already reflected in the current stock price. Therefore, he maintains a Hold rating, suggesting that investors should wait for a more favorable entry point.