Eric Luebchow, an analyst from Wells Fargo, reiterated the Buy rating on Digital Realty (DLR – Research Report). The associated price target remains the same with $185.00.
Eric Luebchow has given his Buy rating due to a combination of factors that highlight Digital Realty’s strong performance and growth potential. The company reported a robust first quarter with leasing figures surpassing expectations, driven by significant contributions from joint ventures and solid rental rates. This positive leasing activity, coupled with a promising sales funnel, suggests sustained momentum, particularly with large capacity blocks in key markets poised for future leasing.
Additionally, Digital Realty’s hyperscale data center fund is advancing well, with substantial equity commitments and a strategic structure that supports capital recycling into new developments. The company’s financial outlook is further bolstered by an upward revision in its Core FFO/share guidance, indicating potential for growth. Despite initial concerns about leasing and hyperscale demand, Digital Realty’s performance in Q1 has alleviated near-term worries and positions the company for an accelerating FFO trajectory beyond 2025. These factors collectively underpin Luebchow’s confidence in maintaining an Overweight rating and raising estimates.
In another report released today, BMO Capital also reiterated a Buy rating on the stock with a $180.00 price target.