Jefferies analyst Jonathan Petersen maintained a Buy rating on Digital Realty (DLR – Research Report) today and set a price target of $218.00.
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Jonathan Petersen’s rating is based on several compelling factors. Digital Realty’s strong performance in colocation leasing, marked by a record-high $76 million in the sub-1 MW category, underscores the growing demand for AI-driven, smaller-scale deployments. This trend highlights the company’s ability to capitalize on the expanding needs of enterprises adopting AI tools.
Furthermore, Digital Realty’s 4Q24 results showed a solid increase in Core FFO per share, with a 6.1% year-over-year growth, slightly surpassing expectations. Although the FY25 guidance slightly missed expectations due to foreign exchange impacts, the anticipated multi-year growth trajectory remains robust. This is supported by projected increases in cash NOI growth and occupancy rates, reinforcing Petersen’s confidence in the stock’s long-term potential.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $205.00 price target.
Based on the recent corporate insider activity of 21 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.