
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust has demonstrated strong financial performance, highlighted by a year-over-year total data center (DC) revenue growth of 11% in the second quarter, reflecting the positive impact of leasing spreads and rent escalators. The company's renewal rates also exhibit robust growth, with contracts for segments over 1MW increasing by 14% on a cash basis, significantly outperforming prior guidance. Additionally, same capital cash net operating income (NOI) growth of 4.4% year-over-year further underscores the strength in data center revenue, driven by consistent demand for high-level service offerings and effective pricing strategies.
Bears say
Digital Realty Trust has experienced a significant decline in GAAP annualized rent signed in the Americas, falling from $187.9 million in the first quarter to just $47.3 million in the second quarter, indicating a slowdown in hyperscale leasing. The company faces substantial competition that may hinder occupancy and rental rate increases, compounded by potential tenant defaults due to adverse global economic conditions, which could negatively impact rental income. Additionally, the success of Digital Realty's growth strategy is heavily reliant on the timely development of new properties and existing space, with current challenges in power availability and potential obsolescence of their infrastructure posing further risks to its financial standing.
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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