Jefferies Financial Group Issues Positive Forecast for Digital Realty Trust (NYSE:DLR) Stock Price

Key Points

• Jefferies raised its price target on Digital Realty to $233 (from $223) and maintained a "buy" rating, implying about a 12.7% upside
• Q1 results beat estimates with revenue of $1.64B (+16.2% YoY) and EPS/FFO in line or ahead, management raised FY‑2026 guidance (core EPS 7.95–8.05) and reported a strong backlog (~$1.8B) and 1.2 GW of pipeline (61% pre‑leased) driven by AI data‑centre demand.
• The stock trades near its 52‑week high (~$206.7) with a high valuation (P/E ~57.4), and analysts note some supply‑chain/operational headwinds — investors should weigh elevated multiples against the company’s growth visibility.

Digital Realty Trust (NYSE:DLR - Get Free Report) had its target price boosted by equities research analysts at Jefferies Financial Group from $223.00 to $233.00 in a note issued to investors on Friday,MarketScreener reports. The firm currently has a "buy" rating on the real estate investment trust's stock. Jefferies Financial Group's target price would indicate a potential upside of 12.73% from the company's current price.

A number of other equities research analysts have also recently issued reports on DLR. The Goldman Sachs Group reissued a "buy" rating and set a $215.00 target price on shares of Digital Realty Trust in a report on Friday. Morgan Stanley boosted their target price on shares of Digital Realty Trust from $210.00 to $215.00 and gave the company an "equal weight" rating in a report on Friday. HSBC set a $193.00 target price on shares of Digital Realty Trust and gave the company a "buy" rating in a report on Thursday, January 15th. Citigroup boosted their target price on shares of Digital Realty Trust from $190.00 to $226.00 and gave the company a "buy" rating in a report on Friday. Finally, Wells Fargo & Company increased their price target on shares of Digital Realty Trust from $195.00 to $220.00 and gave the stock an "overweight" rating in a report on Tuesday. Three analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, Digital Realty Trust presently has a consensus rating of "Moderate Buy" and a consensus target price of $208.50.

Digital Realty Trust Stock Performance

Shares of NYSE:DLR traded up $6.69 during midday trading on Friday, reaching $206.69. The company had a trading volume of 838,987 shares, compared to its average volume of 2,012,727. The company's 50 day moving average price is $182.84 and its 200 day moving average price is $170.06. The company has a current ratio of 1.59, a quick ratio of 1.59 and a debt-to-equity ratio of 0.81. The stock has a market cap of $72.12 billion, a P/E ratio of 57.41, a P/E/G ratio of 4.45 and a beta of 1.07. Digital Realty Trust has a 52-week low of $146.23 and a 52-week high of $206.58.

Digital Realty Trust (NYSE:DLR - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The real estate investment trust reported $0.46 earnings per share for the quarter, hitting analysts' consensus estimates of $0.46. The company had revenue of $1.64 billion for the quarter, compared to the consensus estimate of $1.63 billion. Digital Realty Trust had a net margin of 21.41% and a return on equity of 5.88%. The firm's quarterly revenue was up 16.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.77 EPS. Digital Realty Trust has set its FY 2026 guidance at 7.950-8.050 EPS. As a group, sell-side analysts anticipate that Digital Realty Trust will post 7.94 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Pinnacle Bancorp Inc. bought a new position in shares of Digital Realty Trust in the third quarter worth approximately $25,000. Salomon & Ludwin LLC bought a new position in shares of Digital Realty Trust in the third quarter worth approximately $28,000. Sunbelt Securities Inc. increased its position in shares of Digital Realty Trust by 347.2% in the third quarter. Sunbelt Securities Inc. now owns 161 shares of the real estate investment trust's stock worth $28,000 after purchasing an additional 125 shares during the last quarter. First Horizon Corp bought a new position in shares of Digital Realty Trust in the third quarter worth approximately $31,000. Finally, Bell Investment Advisors Inc increased 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 purchasing an additional 62 shares during the last quarter. 99.71% of the stock is currently owned by institutional investors.

Digital Realty Trust News Summary

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

• Positive Sentiment: Q1 results: Digital Realty beat FFO and revenue estimates (FFO outperformance of ~5%, revenue ~ $1.64B) and reported solid year-over-year growth, underpinning the stock’s positive move today. Digital Realty Trust (DLR) Beats Q1 FFO and Revenue Estimates
• Positive Sentiment: Guidance raise: Management lifted annual core FFO and revenue forecasts, citing strong AI-driven data-center demand — a direct driver of upside to earnings power and investor optimism. Digital Realty boosts annual core FFO, revenue forecasts on strong data center demand
• Positive Sentiment: Pipeline & backlog: Management said backlog rose to ~$1.8B (DLR share ~$1.0B) and the development pipeline jumped to ~1.2 GW under construction (61% pre-leased) — giving revenue/FFO visibility into 2027–2028. That supports growth expectations embedded in guidance. Digital Realty (DLR) Q1 2026 Earnings Transcript
• Positive Sentiment: Analyst upgrades/targets: Multiple firms raised targets (e.g., Stifel to $230, Mizuho to $217), signaling buy-side confidence and adding fresh catalyst for shares. Stifel raises DLR price target Mizuho raises DLR price target
• Neutral Sentiment: Earnings-call nuance: Management flagged some supply-chain and operational hurdles even as leasing momentum remains strong — a mixed signal for near-term margins and execution cadence. Digital Realty Trust Inc (DLR) Q1 2026 Earnings Call Highlights
• Neutral Sentiment: Valuation context: Recent strong share performance has drawn attention to DLR’s valuation after multi-year gains; investors should weigh growth outlook against elevated multiples. Weighing Digital Realty Trust (DLR) Valuation After A Strong Multi Year Return
• Negative Sentiment: Governance noise: An activist presentation at a different REIT named an executive (Andrew Power) as part of its critique, creating a small governance/distraction angle that could draw headlines though it’s not directly about DLR operations. Sieve Capital Issues Presentation

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.