Digital Realty initiated with an Outperform at Oppenheimer

Oppenheimer initiated coverage of Digital Realty (DLR) with an Outperform rating and $200 price target The firm notes Digital Realty is one of the largest and now most diversified datacenter operators with over 300 locations and capacity of 2.8GW, 5% of the global total. In Oppenheimer’s opinion, Digital Realty is well positioned as a major beneficiary of AI and cloud megatrends with strong demand driving improved volumes and pricing. High demand datacenter clusters like Northern Virginia are operating at virtually 100% utilization. The firm also points out that the stock is trading below its five-year revenue multiple and in line on AFFO, despite the accelerating growth.