Analyst Ari Klein of BMO Capital reiterated a Buy rating on Digital Realty, retaining the price target of $190.00.
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Ari Klein has given his Buy rating due to a combination of factors that highlight Digital Realty’s strong performance and promising outlook. The company reported impressive second-quarter results, with Core Funds From Operations (FFO) exceeding expectations by $0.11, driven by higher fee income and favorable foreign exchange impacts. Notably, Digital Realty achieved record leasing in the 0-1MW category, which is crucial for near-term growth and indicates effective execution and market share gains.
Furthermore, the company has improved its guidance for 2025, supported by a robust backlog that mitigates growth risks and positions Digital Realty for sustainable high single-digit long-term growth. The positive leasing spreads and a healthy leasing pipeline, despite some variability in larger leases, reinforce the company’s strong market position. These elements collectively underpin Klein’s confidence in Digital Realty’s ability to deliver continued growth and justify the Buy rating.
According to TipRanks, Klein is a 4-star analyst with an average return of 4.6% and a 57.00% success rate. Klein covers the Real Estate sector, focusing on stocks such as Equinix, Pebblebrook Hotel, and Ryman.
In another report released on July 23, Evercore ISI also maintained a Buy rating on the stock with a $200.00 price target.