In a report released today, Michael Elias from TD Cowen maintained a Hold rating on Digital Realty, with a price target of $163.00.
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Michael Elias has given his Hold rating due to a combination of factors related to Digital Realty’s recent performance and future prospects. The company reported strong second-quarter results for 2025 and increased its guidance for the year, which is a positive indicator. However, the leasing activity for the quarter was slightly below expectations, and while management expressed optimism about future leasing potential, there are concerns about the valuation being high relative to growth expectations.
Despite the encouraging demand pipeline and the potential for record leasing in the latter half of 2025, there are strategic decisions, such as placing the Charlotte site into a fund, that temper enthusiasm for immediate outsized leasing contributions. Management’s focus on managing capital expenditures and maintaining consistent growth, while positive, suggests a cautious approach. These factors, combined with the company’s current valuation, contribute to the decision to maintain a Hold rating.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DLR in relation to earlier this year.