Keefe downgrades DigitalBridge to Market Perform on mix pressure

Keefe Bruyette analyst Jade Rahmani downgraded DigitalBridge (DBRG) to Market Perform from Outperform with a price target of $14, down from $17.75. Post the Q3 report, the firm reduced forward estimates including fee revenue by 10% and fee-related earnings by up to 25%. The analyst says DigitalBridge’s mix is more weighted to co-investment vehicles than anticipated, reducing fees rates and catch-up fees. While the digital infrastructure backdrop is favorable, Keefe moves to the sidelines and awaits increased confidence in DigitalBridge’s ability to execute.