Digital Realty upgraded to Outperform at Scotiabank after pullback

As previously reported, Scotiabank analyst Maher Yaghi upgraded Digital Realty (DLR) to Outperform from Sector Perform with an unchanged price target of $208. As shown by the company’s order book and leading hyperscalers’ commentaries in their recent conference calls, demand for computational power remains strong, the analyst tells investors. The firm, which continues to believe that infrastructure demand should remain strong, underpinning a multi-year growth path for companies in the sector, adds that Digital Realty has significantly improved its balance sheet in the last few quarters and sees the recent stock pullback offering an “attractive entry point.”