Bullish On DigitalBridge: Analyst Expects FEEUM Growth Despite Tech Sector Slowdown

Keefe, Bruyette & Woods analyst Jade J. Rahmani upgraded DigitalBridge Group Inc DBRG to Outperform from Market Perform with an increased price target of $17.5 from $12.5.
The rating upgrade reflects the potential for a sharp rise in fundraising on recent developments that point to increasing demand for digital infrastructure.
Although the analyst sees a cyclical slowdown in the technology sector and recession woes as headwinds, the analyst is bullish on DBRG's strong digital infrastructure growth potential, given the acceleration in artificial intelligence (AI) adoption.
Rahmani also believes DBRG's strong series of acquisitions and the final exit of legacy investments positions it well for profitability growth.
Rahmani projects fee earning equity under management (FEEUM) growth of 22% Y/Y in 2023 (ex. AMP) and 24% in 2024.
The analyst expects EPS of $0.29 vs. consensus of $(1.36) in 2023, $0.70 vs. consensus of $(0.54) in 2024, and $0.89 in 2025.
Also Read: DigitalBridge Weighs Minority Stake Sale In Vantage Data Centers: Report
Price Action: DBRG shares are trading higher by 10% at $14.12 on the last check Monday.

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