BTIG Research Upgrades Digital Realty Trust (NYSE:DLR) to Strong-Buy

Key Points

• BTIG Research upgraded Digital Realty Trust to a “strong-buy” rating, adding to a generally positive analyst backdrop for the data center REIT.
• Other firms have also been raising their outlooks, with multiple price targets increased and the stock carrying a consensus Moderate Buy rating and an average target price of $216.75.
• Digital Realty Trust reported quarterly EPS in line with expectations and revenue slightly above estimates, while also guiding FY 2026 EPS to 7.950–8.050.

Digital Realty Trust (NYSE:DLR - Get Free Report) was upgraded by analysts at BTIG Research to a "strong-buy" rating in a research report issued to clients and investors on Friday,Zacks.com reports.

A number of other research analysts have also recently issued reports on DLR. Scotiabank boosted their target price on Digital Realty Trust from $195.00 to $222.00 and gave the company an "outperform" rating in a research note on Monday, April 27th. UBS Group raised their price target on Digital Realty Trust from $225.00 to $227.00 and gave the stock a "buy" rating in a research report on Friday, April 24th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $211.00 price objective on shares of Digital Realty Trust in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft raised their target price on shares of Digital Realty Trust from $196.00 to $220.00 and gave the stock a "buy" rating in a report on Monday, May 18th. Finally, BMO Capital Markets upped their price target on shares of Digital Realty Trust from $205.00 to $220.00 and gave the company an "outperform" rating in a report on Monday, April 20th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $216.75.

Digital Realty Trust Stock Up 0.6%

Shares of NYSE DLR opened at $180.39 on Friday. Digital Realty Trust has a 52-week low of $146.23 and a 52-week high of $208.14. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.59 and a current ratio of 1.59. The stock has a market cap of $63.39 billion, a P/E ratio of 47.60, a P/E/G ratio of 4.87 and a beta of 1.03. The firm has a 50 day moving average price of $187.87 and a 200 day moving average price of $179.03.

Digital Realty Trust (NYSE:DLR - Get Free Report) last posted its earnings results on Thursday, April 23rd. The real estate investment trust reported $0.46 earnings per share for the quarter, hitting the consensus estimate of $0.46. Digital Realty Trust had a net margin of 21.73% and a return on equity of 6.05%. The company had revenue of $1.64 billion for the quarter, compared to analyst estimates of $1.63 billion. During the same period last year, the business posted $1.77 earnings per share. The business's revenue for the quarter was up 16.2% compared to the same quarter last year. Digital Realty Trust has set its FY 2026 guidance at 7.950-8.050 EPS. Analysts expect that Digital Realty Trust will post 8.05 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its stake in shares of Digital Realty Trust by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 54,260,359 shares of the real estate investment trust's stock valued at $8,394,620,000 after buying an additional 854,828 shares in the last quarter. Cohen & Steers Inc. grew its position in shares of Digital Realty Trust by 18.0% in the 4th quarter. Cohen & Steers Inc. now owns 28,001,340 shares of the real estate investment trust's stock valued at $4,332,366,000 after acquiring an additional 4,276,073 shares during the period. Norges Bank acquired a new position in shares of Digital Realty Trust during the 4th quarter worth about $3,402,995,000. State Street Corp raised its holdings in shares of Digital Realty Trust by 1.1% in the 4th quarter. State Street Corp now owns 20,649,053 shares of the real estate investment trust's stock valued at $3,219,256,000 after purchasing an additional 231,933 shares during the period. Finally, Bank of America Corp DE lifted its stake in Digital Realty Trust by 6.0% in the 1st quarter. Bank of America Corp DE now owns 9,470,695 shares of the real estate investment trust's stock valued at $1,706,714,000 after purchasing an additional 534,158 shares during the last quarter. Institutional investors and hedge funds own 99.71% of the company's stock.

About Digital Realty Trust

Digital Realty Trust, Inc NYSE: DLR is a real estate investment trust that owns, acquires and operates carrier-neutral data centers and provides related colocation and interconnection solutions. The company focuses on large-scale, mission-critical facilities that support the physical infrastructure needs of cloud providers, enterprises, network operators and content companies. Digital Realty's offerings are designed to enable secure, reliable and highly available IT infrastructure with an emphasis on power density, cooling, and physical security.

Digital Realty's product set spans wholesale data center space, turnkey build-to-suit facilities, and retail colocation suites, complemented by interconnection services that allow customers to establish private and public connections to networks, cloud on-ramps and other ecosystem partners.

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