
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust's positive outlook is bolstered by an increase in full-year 2024 guidance for cash renewal spreads, now projected between 8-10%, driven by robust leasing volume and pricing. The company's significant backlog of signed leases, totaling $760 million, represents approximately 20% of annualized in-place data center revenue, supporting accelerated growth prospects for 2025 and beyond. Furthermore, the continued strong demand for data center space, particularly from hyperscalers, aligns with upward trends in cash re-leasing spreads and reinforces expectations for revenue and AFFO growth.
Bears say
The slowdown in hyperscale cloud growth, as indicated by below-expectation revenues from major players like Microsoft and Google, creates uncertainty for Digital Realty Trust's future leasing opportunities. Additionally, the anticipated decline in expiring rates from 2026 onwards raises concerns about potential revenue pressures and the company's ability to effectively adjust pricing in a tightening market. Lastly, significant management changes within these cloud service providers may further complicate decision-making related to data center leasing, introducing additional risks to Digital Realty's operational stability.
This aggregate rating is based on analysts' research of Digital Realty Trust and is not a guaranteed prediction by Public.com or investment advice.
DLR Analyst Forecast & Price Prediction
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