In a report released today, Ari Klein from BMO Capital reiterated a Buy rating on Digital Realty, with a price target of $195.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Ari Klein has given his Buy rating due to a combination of factors that highlight Digital Realty’s strong performance and future potential. The company’s third-quarter results exceeded expectations, with core funds from operations per share and EBITDA both surpassing consensus estimates. This financial outperformance was driven by higher-than-expected rental, interconnection, and fee income revenue, alongside a favorable foreign exchange impact.
Ari Klein also points out Digital Realty’s robust future development capacity, with over 5GW available, which positions the company well for long-term growth. Despite some softness in larger leasing deals, the overall leasing activity remains strong, particularly in smaller segments, and the company’s backlog continues to grow. These factors, combined with the company’s strategic positioning to benefit from increasing demand in core markets, particularly in the AI sector, underpin the Buy recommendation.
In another report released on October 22, Evercore ISI also maintained a Buy rating on the stock with a $200.00 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.