Morgan Stanley Issues Positive Forecast for Digital Realty Trust (NYSE:DLR) Stock Price

Key Points

• Morgan Stanley raised its price target on Digital Realty Trust to $215 from $210 but kept an "equal weight" rating, implying only about a 4% upside from the current share price.
• DLR reported Q1 revenue slightly above estimates and met EPS, raised FY2026 guidance (7.95–8.05 EPS) and cited strong AI-driven data-center demand with a larger backlog (~$1.8B) and 1.2 GW under construction (61% pre-leased).
• Analysts have a consensus of Moderate Buy with an average price target of $208.50 while the stock trades near its 12‑month high (~$206.7), reflecting limited upside and an elevated valuation (P/E ≈ 57).

Digital Realty Trust (NYSE:DLR - Get Free Report) had its price objective lifted by investment analysts at Morgan Stanley from $210.00 to $215.00 in a research note issued to investors on Friday,MarketScreener reports. The brokerage presently has an "equal weight" rating on the real estate investment trust's stock. Morgan Stanley's price objective suggests a potential upside of 4.02% from the company's current price.

Several other research firms also recently weighed in on DLR. Cantor Fitzgerald started coverage on Digital Realty Trust in a research note on Thursday, April 9th. They set an "overweight" rating and a $211.00 price target for the company. TD Cowen reissued a "hold" rating on shares of Digital Realty Trust in a report on Friday. Weiss Ratings raised Digital Realty Trust from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, February 17th. Deutsche Bank Aktiengesellschaft started coverage on Digital Realty Trust in a report on Monday, January 5th. They set a "buy" rating and a $180.00 price objective on the stock. Finally, Scotiabank increased their price objective on Digital Realty Trust from $189.00 to $195.00 and gave the stock a "sector outperform" rating in a report on Tuesday, April 7th. Three research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $208.50.

Digital Realty Trust Stock Performance

NYSE:DLR traded up $6.69 during trading on Friday, reaching $206.69. The company's stock had a trading volume of 838,987 shares, compared to its average volume of 2,012,727. The firm has a market cap of $72.12 billion, a price-to-earnings ratio of 57.41, a price-to-earnings-growth ratio of 4.45 and a beta of 1.07. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.59 and a current ratio of 1.59. The firm has a 50 day moving average of $182.84 and a 200-day moving average of $170.06. Digital Realty Trust has a 12 month low of $146.23 and a 12 month high of $206.58.

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

Hedge Funds Weigh In On Digital Realty Trust

A number of large investors have recently modified their holdings of the company. IFM Investors Pty Ltd increased its stake in Digital Realty Trust by 2.6% in the 1st quarter. IFM Investors Pty Ltd now owns 127,397 shares of the real estate investment trust's stock worth $22,958,000 after purchasing an additional 3,177 shares during the period. Walker Asset Management LLC bought a new stake in shares of Digital Realty Trust in the 1st quarter worth approximately $236,000. iA Global Asset Management Inc. bought a new stake in shares of Digital Realty Trust during the first quarter valued at approximately $3,560,000. Premier Path Wealth Partners LLC boosted its position in shares of Digital Realty Trust by 19.5% during the first quarter. Premier Path Wealth Partners LLC now owns 3,647 shares of the real estate investment trust's stock valued at $657,000 after purchasing an additional 595 shares in the last quarter. Finally, Capital Investment Counsel LLC boosted its position in shares of Digital Realty Trust by 3.1% during the first quarter. Capital Investment Counsel LLC now owns 43,211 shares of the real estate investment trust's stock valued at $7,787,000 after purchasing an additional 1,319 shares in the last quarter. 99.71% of the stock is 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: 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.

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