Digital Realty’s Strong Financial Performance and Strategic Positioning Justify Buy Rating

In a report released today, Andy Yu CFA from DBS maintained a Buy rating on Digital Realty (DLR – Research Report), with a price target of $213.00.

Andy Yu CFA has given his Buy rating due to a combination of factors including Digital Realty’s strong financial performance and strategic positioning in the data center industry. The company’s adjusted EBITDA for the first quarter of 2025 showed a significant year-over-year increase, surpassing market expectations, and management has raised the full-year forecast, indicating confidence in continued growth.
Additionally, Digital Realty’s expansive global presence and acquisition-driven growth strategy bolster its competitive edge. As the second-largest data center provider globally, the company benefits from a diversified customer base and a robust ecosystem, which includes a substantial number of interconnections and a wide array of industry clients. These factors, along with a rich buildable capacity for future expansion, underpin the Buy rating with a target price of USD 213.

In another report released on June 5, Evercore ISI also maintained a Buy rating on the stock with a $200.00 price target.

Based on the recent corporate insider activity of 20 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.