Daiwa Capital Markets Initiates Coverage on Digital Realty Trust (NYSE:DLR)

Key Points

• Daiwa Capital Markets has initiated coverage on Digital Realty Trust (NYSE:DLR) with a buy rating and a price target of $210.00, suggesting a potential upside of 22.29% from the previous close.
• Other analysts have also rated the stock positively, with an average consensus price target of $192.23 and a majority of ratings classified as Buy or Moderate Buy.
• Digital Realty Trust reported strong earnings, with $1.87 earnings per share for the last quarter, exceeding estimates, alongside a 10% revenue growth from the previous year.

Stock analysts at Daiwa Capital Markets began coverage on shares of Digital Realty Trust (NYSE:DLR - Get Free Report) in a research note issued on Wednesday. The firm set a "buy" rating and a $210.00 price target on the real estate investment trust's stock. Daiwa Capital Markets' price objective would indicate a potential upside of 22.29% from the company's previous close.

Other research analysts have also recently issued research reports about the company. Truist Financial set a $199.00 target price on Digital Realty Trust and gave the company a "buy" rating in a report on Wednesday, July 30th. Wells Fargo & Company lifted their target price on Digital Realty Trust from $185.00 to $195.00 and gave the company an "overweight" rating in a report on Friday, July 25th. Citigroup reiterated a "buy" rating on shares of Digital Realty Trust in a report on Tuesday, August 26th. Morgan Stanley assumed coverage on Digital Realty Trust in a report on Thursday, October 16th. They issued an "equal weight" rating and a $195.00 target price on the stock. Finally, Guggenheim started coverage on Digital Realty Trust in a report on Wednesday, July 9th. They issued a "neutral" rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $192.23.

Digital Realty Trust Price Performance

DLR stock opened at $171.72 on Wednesday. Digital Realty Trust has a 52-week low of $129.95 and a 52-week high of $198.00. The stock's fifty day simple moving average is $170.15 and its 200-day simple moving average is $168.26. The company has a quick ratio of 2.22, a current ratio of 2.22 and a debt-to-equity ratio of 0.82. The stock has a market capitalization of $58.56 billion, a price-to-earnings ratio of 45.07, a price-to-earnings-growth ratio of 4.87 and a beta of 0.96.

Digital Realty Trust (NYSE:DLR - Get Free Report) last issued its earnings results on Thursday, July 24th. The real estate investment trust reported $1.87 earnings per share for the quarter, beating analysts' consensus estimates of $1.74 by $0.13. Digital Realty Trust had a return on equity of 6.46% and a net margin of 23.98%.The firm had revenue of $1.49 billion for the quarter, compared to analysts' expectations of $1.44 billion. During the same quarter last year, the firm earned $1.65 earnings per share. The firm's revenue for the quarter was up 10.0% compared to the same quarter last year. Digital Realty Trust has set its FY 2025 guidance at 7.150-7.250 EPS. Equities research analysts expect that Digital Realty Trust will post 7.07 EPS for the current year.

Insider Buying and Selling

In other Digital Realty Trust news, CEO Andrew Power sold 53,269 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $175.16, for a total value of $9,330,598.04. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.17% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of DLR. Norges Bank acquired a new position in shares of Digital Realty Trust in the second quarter worth about $3,808,270,000. Canada Pension Plan Investment Board increased its holdings in Digital Realty Trust by 63.0% in the first quarter. Canada Pension Plan Investment Board now owns 7,144,737 shares of the real estate investment trust's stock valued at $1,023,769,000 after buying an additional 2,760,286 shares during the last quarter. Nuveen LLC bought a new stake in Digital Realty Trust in the first quarter valued at about $342,389,000. Vanguard Group Inc. increased its holdings in Digital Realty Trust by 1.8% in the first quarter. Vanguard Group Inc. now owns 52,378,860 shares of the real estate investment trust's stock valued at $7,505,367,000 after buying an additional 925,674 shares during the last quarter. Finally, Pictet Asset Management Holding SA increased its holdings in Digital Realty Trust by 41.5% in the first quarter. Pictet Asset Management Holding SA now owns 3,129,819 shares of the real estate investment trust's stock valued at $448,422,000 after buying an additional 918,549 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 operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming.

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