Digital Realty’s Strong Market Position and Growth Potential Drive Buy Rating

Richard Choe, an analyst from J.P. Morgan, reiterated the Buy rating on Digital Realty (DLR – Research Report). The associated price target remains the same with $190.00.

Richard Choe has given his Buy rating due to a combination of factors that highlight Digital Realty’s strong market position and growth potential. The company has demonstrated robust demand from hyperscale and enterprise customers, with significant bookings and a growing backlog. This demand is driven by the need for large-scale, high-density deployments, particularly in AI-related projects, which positions Digital Realty as a key partner in the industry.
Furthermore, Digital Realty’s strategic initiatives, such as the launch of its U.S. Hyperscale Data Center Fund and expansion in international markets like Indonesia, underscore its growth trajectory. The company benefits from a favorable pricing environment, with strong renewal rates and new signings, which are expected to provide a long-term tailwind. Additionally, the company’s financial metrics, including a solid leverage ratio and positive revenue and EBITDA growth projections, support the Buy rating, with a maintained price target of $190 based on a discounted cash flow analysis.

In another report released today, BMO Capital also reiterated a Buy rating on the stock with a $180.00 price target.