In a report released yesterday, Michael Funk from Bank of America Securities reiterated a Buy rating on Digital Realty, with a price target of $210.00.
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Michael Funk has given his Buy rating due to a combination of factors that highlight Digital Realty’s strong market position and future growth potential. The company’s solid performance in the third quarter of 2025, particularly in terms of revenue, adjusted EBITDA, and Core FFO per share, exceeded both Bank of America and Street estimates. This strong financial performance, coupled with a positive outlook for 2025, has led to an increase in guidance and estimates for the coming years.
Digital Realty’s strategic focus on expanding its presence in core operational areas and its significant development capacity of over 5GW positions it well to capitalize on growing data center demand. The company’s exposure to AI training and a robust bookings pipeline further support expectations for accelerating Core FFO per share growth in 2025 and 2026. These factors, along with the company’s ability to maintain healthy releasing spreads, justify the premium valuation and the reiterated Buy rating with a price objective of $210.
In another report released today, BMO Capital also reiterated a Buy rating on the stock with a $195.00 price target.
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.