Digital Realty Trust (NYSE:DLR) Raised to "Hold" at Wall Street Zen

Key Points

• Digital Realty Trust was upgraded by Wall Street Zen from sell to hold, adding to a generally bullish analyst backdrop for the data center REIT.
• Other firms have recently turned more positive on DLR, including TD Cowen raising the stock to buy with a higher price target, while the consensus rating remains Moderate Buy with an average target of $217.38.
• The company’s latest earnings were mixed: revenue beat expectations and came with stronger leasing activity and guidance for fiscal 2026, but EPS missed estimates by a wide margin.

Digital Realty Trust (NYSE:DLR - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Saturday.

DLR has been the topic of several other research reports. TD Cowen raised shares of Digital Realty Trust from a "hold" rating to a "buy" rating and upped their price target for the company from $192.00 to $222.00 in a report on Friday. Citizens Jmp lifted their price objective on Digital Realty Trust from $220.00 to $250.00 and gave the stock a "market outperform" rating in a research report on Monday, April 27th. Sanford C. Bernstein increased their target price on Digital Realty Trust from $218.00 to $232.00 and gave the company an "outperform" rating in a report on Friday, April 24th. BTIG Research started coverage on Digital Realty Trust in a research report on Friday, July 10th. They set a "buy" rating and a $215.00 price target for the company. Finally, Wells Fargo & Company boosted their price target on Digital Realty Trust from $195.00 to $220.00 and gave the stock an "overweight" rating in a report on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $217.38.

Digital Realty Trust Stock Performance

DLR opened at $198.63 on Friday. Digital Realty Trust has a 1-year low of $146.23 and a 1-year high of $208.14. The stock has a market cap of $69.80 billion, a P/E ratio of 96.42, a P/E/G ratio of 4.88 and a beta of 1.03. The stock's 50 day simple moving average is $184.56 and its 200 day simple moving average is $180.71. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.59 and a quick ratio of 1.59.

Digital Realty Trust (NYSE:DLR - Get Free Report) last posted its earnings results on Thursday, July 23rd. The real estate investment trust reported $1.21 EPS for the quarter, missing analysts' consensus estimates of $1.98 by ($0.77). The firm had revenue of $1.92 billion for the quarter, compared to analysts' expectations of $1.66 billion. Digital Realty Trust had a return on equity of 3.50% and a net margin of 11.80%.The firm's revenue for the quarter was up 28.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.87 earnings per share. Digital Realty Trust has set its FY 2026 guidance at 8.150-8.200 EPS. As a group, equities analysts anticipate that Digital Realty Trust will post 8.04 EPS for the current fiscal year.

Hedge Funds Weigh In On Digital Realty Trust

Large investors have recently added to or reduced their stakes in the business. Sunbelt Securities Inc. grew its holdings in Digital Realty Trust by 347.2% in the 3rd quarter. Sunbelt Securities Inc. now owns 161 shares of the real estate investment trust's stock valued at $28,000 after buying an additional 125 shares during the period. Bell Investment Advisors Inc boosted its position in shares of Digital Realty Trust by 56.9% in the first quarter. Bell Investment Advisors Inc now owns 171 shares of the real estate investment trust's stock worth $31,000 after acquiring an additional 62 shares during the last quarter. Harvest Fund Management Co. Ltd grew its holdings in Digital Realty Trust by 970.6% in the third quarter. Harvest Fund Management Co. Ltd now owns 182 shares of the real estate investment trust's stock valued at $31,000 after purchasing an additional 165 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in Digital Realty Trust in the third quarter valued at approximately $34,000. Finally, MCF Advisors LLC acquired a new position in Digital Realty Trust during the fourth quarter worth approximately $35,000. 99.71% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Digital Realty Trust

Here are the key news stories impacting Digital Realty Trust this week:

• Positive Sentiment: Digital Realty reported Q2 results that showed strong leasing activity, a record backlog, and higher renewal rents, which helped the company beat FFO expectations and improve its 2026 outlook.
• Positive Sentiment: The company raised FY 2026 adjusted FFO guidance to $8.15-$8.20 per share and lifted revenue guidance to $6.9 billion-$7.0 billion, signaling confidence in continued cloud and AI-driven demand.
• Positive Sentiment: TD Cowen upgraded Digital Realty Trust to Buy from Hold and raised its price target to $222 from $192, citing stronger data center demand. Article Title
• Positive Sentiment: JPMorgan also raised its price target on DLR to $235 from $230 and reiterated an Overweight rating, implying additional upside from current levels. Article Title
• Neutral Sentiment: Despite the upbeat guidance, the company’s reported EPS of $1.21 came in well below Wall Street expectations, so investors are balancing the earnings miss against the stronger operating trends.

Digital Realty Trust Company Profile

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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