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Digital Realty’s Strategic Growth and Market Positioning Lead to Buy Rating

Digital Realty’s Strategic Growth and Market Positioning Lead to Buy Rating

David Barden, an analyst from Bank of America Securities, reiterated the Buy rating on Digital Realty (DLRResearch Report). The associated price target remains the same with $205.00.

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David Barden has given his Buy rating due to a combination of factors surrounding Digital Realty’s strategic position and market prospects. The company is anticipated to benefit significantly from a strong bookings pipeline, as well as accelerating growth in Core Funds-from-Operations per share in the coming years. This outlook is supported by the demand for data center services, particularly in AI training, which positions Digital Realty as a leading player in the sector.
Additionally, the company’s ability to navigate a challenging supply-demand environment in the data center market has been a key factor in the Buy rating. While the fourth quarter might not replicate the record bookings of the previous quarter, the underlying demand remains robust. Digital Realty’s upcoming 2025 financial guidance, expected to reflect at least 5% growth, also supports the optimistic outlook. Consequently, Barden reiterates a price objective of $205, reflecting confidence in Digital Realty’s future performance.

In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $200.00 price target.

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