Expert Outlook: Digital Realty Trust Through The Eyes Of 9 Analysts

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Throughout the last three months, 9 analysts have evaluated Digital Realty Trust DLR, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 2 4 2 0
Last 30D 0 0 1 0 0
1M Ago 0 0 2 1 0
2M Ago 0 1 1 0 0
3M Ago 1 1 0 1 0

In the assessment of 12-month price targets, analysts unveil insights for Digital Realty Trust, presenting an average target of $136.22, a high estimate of $158.00, and a low estimate of $108.00. This current average has increased by 8.21% from the previous average price target of $125.88.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Digital Realty Trust by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Matthew Niknam Deutsche Bank Raises Hold $145.00 $143.00
John Hodulik UBS Raises Neutral $147.00 $143.00
Michael Elias TD Cowen Raises Hold $122.00 $116.00
Phani Kanumuri HSBC Raises Reduce $118.00 $115.00
Eric Luebchow Wells Fargo Raises Overweight $155.00 $135.00
Simon Flannery Morgan Stanley Raises Equal-Weight $108.00 $100.00
Irvin Liu Evercore ISI Group Maintains Outperform $154.00 -
Anthony Hau Truist Securities Raises Buy $158.00 $145.00
Brendan Lynch Barclays Raises Underweight $119.00 $110.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Digital Realty Trust. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Digital Realty Trust compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Digital Realty Trust's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Digital Realty Trust analyst ratings.

Get to Know Digital Realty Trust Better

Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. The company operates as a real estate investment trust.

Digital Realty Trust: A Financial Overview

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Digital Realty Trust's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -0.57%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.

Net Margin: Digital Realty Trust's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 20.38%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.48%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.63%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.0.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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