Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on Digital Realty Trust DLR in the last three months.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 3 | 4 | 2 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 1 | 1 | 0 |
| 2M Ago | 0 | 0 | 2 | 1 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $138.67, a high estimate of $170.00, and a low estimate of $108.00. Observing a 7.68% increase, the current average has risen from the previous average price target of $128.78.
Exploring Analyst Ratings: An In-Depth Overview
An in-depth analysis of recent analyst actions unveils how financial experts perceive Digital Realty Trust. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Ari Klein | BMO Capital | Raises | Outperform | $170.00 | $144.00 |
| Jonathan Atkin | RBC Capital | Raises | Outperform | $160.00 | $144.00 |
| Brendan Lynch | Barclays | Raises | Underweight | $123.00 | $119.00 |
| 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 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Digital Realty Trust. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Digital Realty Trust compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Digital Realty Trust's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
For valuable insights into Digital Realty Trust's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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.
Breaking Down Digital Realty Trust's Financial Performance
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Negative Revenue Trend: Examining Digital Realty Trust's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -0.57% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Real Estate sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Digital Realty Trust's net margin is below industry averages, indicating potential 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): Digital Realty Trust's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.48%, the company may encounter challenges in delivering 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: With a below-average debt-to-equity ratio of 1.0, Digital Realty Trust adopts a prudent financial strategy, indicating a balanced approach to debt management.
How Are Analyst Ratings Determined?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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