The Analyst Verdict: Digital Realty Trust In The Eyes Of 12 Experts

Digital Realty Trust DLR underwent analysis by 12 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $195.5, along with a high estimate of $220.00 and a low estimate of $139.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 2.03%.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Digital Realty Trust's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 | |--------------------|--------------------|---------------|-----------------|--------------------|--------------------| |Michael Rollins |Citigroup |Lowers |Buy | $174.00|$188.00 | |Omotayo Okusanya |Mizuho |Lowers |Outperform | $177.00|$211.00 | |Brendan Lynch |Barclays |Lowers |Underweight | $139.00|$142.00 | |Anthony Hau |Truist Securities |Lowers |Buy | $185.00|$201.00 | |Greg Miller |JMP Securities |Maintains |Market Outperform| $220.00|$220.00 | |Maher Yaghi |Scotiabank |Announces |Sector Outperform| $208.00|- | |Greg Miller |JMP Securities |Maintains |Market Outperform| $220.00|$220.00 | |Richard Choe |JP Morgan |Raises |Overweight | $190.00|$185.00 | |Greg Miller |JMP Securities |Maintains |Market Outperform| $220.00|$220.00 | |Eric Luebchow |Wells Fargo |Lowers |Overweight | $185.00|$210.00 | |Greg Miller |JMP Securities |Maintains |Market Outperform| $220.00|$220.00 | |Maher Yaghi |Scotiabank |Raises |Sector Perform | $208.00|$178.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Digital Realty Trust. This offers insight into analysts' perspectives on 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: Delving into movements, analysts provide estimates for the future value of Digital Realty Trust's stock. This analysis reveals shifts in analysts' expectations over time.

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.

All You Need to Know About Digital Realty Trust

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's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3M period, Digital Realty Trust showcased positive performance, achieving a revenue growth rate of 4.84% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Real Estate sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Digital Realty Trust's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 12.49%, 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 0.87%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Digital Realty Trust's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.4%, the company may encounter challenges in delivering 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 0.87.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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