Digital Realty initiated with an Outperform at JMP Securities

JMP Securities analyst Greg Miller initiated coverage of Digital Realty (DLR) with an Outperform rating and $220 price target The firm says “we are in the midst of the largest digital infrastructure spend since the creation of the internet.” Over the course of the next five years, JPM expects well over $1.0 trillion in digital infrastructure spending that will become the backbone of artificial intelligence, cloud, and edge compute, and likely a wide variety of other applications. Elevated digital infrastructure spending for the next several years will likely lead to positive estimate revisions, as well as multiple expansion for the stocks in the digital infrastructure universe, the analyst tells investors in a research note. JMP imitated seven names in the digit infrastructure group with Outperform ratings.