Digital Realty’s Strong Financial Performance and Growth Potential Justifies Buy Rating

Analyst Ari Klein from BMO Capital reiterated a Buy rating on Digital Realty (DLR – Research Report) and keeping the price target at $180.00.

Ari Klein has given his Buy rating due to a combination of factors that highlight Digital Realty’s strong financial performance and growth potential. The company’s first-quarter results exceeded expectations, with Core FFO per share surpassing consensus estimates, driven by a property tax refund and higher-than-expected EBITDA. This financial outperformance underscores the company’s ability to deliver on its growth objectives.
Additionally, Digital Realty’s leasing activity has been robust, with significant bookings and record pricing, particularly in the AI sector, which accounted for a substantial portion of signings. The company’s strong pipeline and record backlog provide visibility into future growth, reducing risk and supporting an optimistic outlook. Despite potential macroeconomic challenges, the demand for Digital Realty’s services remains strong, particularly in the 0-1MW leasing segment, which further justifies the Buy rating.

In another report released on April 23, JMP Securities also reiterated a Buy rating on the stock with a $220.00 price target.