A Closer Look at 15 Analyst Recommendations For Digital Realty Trust

In the last three months, 15 analysts have published ratings on Digital Realty Trust DLR, offering a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 6 3 2 0
Last 30D 0 0 0 1 0
1M Ago 4 4 2 0 0
2M Ago 0 2 1 1 0
3M Ago 0 0 0 0 0

Analysts have recently evaluated Digital Realty Trust and provided 12-month price targets. The average target is $176.13, accompanied by a high estimate of $207.00 and a low estimate of $128.00. Marking an increase of 9.35%, the current average surpasses the previous average price target of $161.07.

price target chart

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Digital Realty Trust is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Brendan Lynch Barclays Raises Underweight $142.00 $135.00
Anthony Hau Truist Securities Raises Buy $202.00 $168.00
Jonathan Atkin RBC Capital Raises Outperform $207.00 $177.00
Jonathan Petersen Jefferies Raises Buy $205.00 $190.00
Michael Elias TD Cowen Raises Hold $128.00 $120.00
Frank Louthan Raymond James Raises Strong Buy $190.00 $170.00
Erik Rasmussen Stifel Raises Buy $195.00 $185.00
Richard Choe JP Morgan Raises Overweight $185.00 $180.00
Maher Yaghi Scotiabank Raises Sector Perform $178.00 $157.00
Eric Luebchow Wells Fargo Raises Overweight $185.00 $175.00
Irvin Liu Evercore ISI Group Raises Outperform $175.00 $160.00
Eric Luebchow Wells Fargo Raises Overweight $175.00 $170.00
Brendan Lynch Barclays Raises Underweight $135.00 $130.00
Phani Kanumuri HSBC Raises Hold $160.00 $124.00
Richard Choe JP Morgan Raises Overweight $180.00 $175.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Digital Realty Trust. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Digital Realty Trust's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Digital Realty Trust analyst ratings.

Discovering Digital Realty Trust: A Closer Look

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 been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 2.05%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Real Estate sector.

Net Margin: Digital Realty Trust's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 2.87%, 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 0.2%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Digital Realty Trust's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.09%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.89.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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

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