Digital Realty Trust, Inc. (NYSE:DLR) is one of the Best Digital Infrastructure REITs to Buy According to Analysts. Based on a report by TheFly on April 27, Scotiabank analyst Maher Yaghi raised the price target on Digital Realty to $222 from $195 while maintaining an Outperform rating on the stock, driven by the strong demand for digital infrastructure.
The analyst remains bullish on Digital Realty’s prospects for this year, mainly due to its operational strengths and role as a key player in building AI infrastructure. Similarly, JPMorgan also raised its price target on Digital Realty to $230 from $210 while keeping an Overweight rating on the shares. It cited Digital Realty’s first-quarter results as strong, noting that the firm is seeing strong bookings driven by enterprise AI demand and hyperscale AI inference.
On April 23, Digital Realty reported a 16% gain in total revenues for the first quarter of the year to $1.6 billion. Net income during the period registered at $175 million, while net income available to common stockholders stood at $169 million.
“Digital Realty saw a further acceleration in data center demand and our growth trajectory in the first quarter, with record 0–1 megawatt plus interconnection leasing and the largest hyperscale lease in company history, which contributed to double-digit growth in Core FFO per share. We are swiftly advancing hyperscale AI-oriented capacity in the U.S., growing our connectivity-rich portfolio across key global markets, and broadening our capital base to prudently extend Digital Realty’s runway for growth,” Digital Realty President and Chief Executive Officer Andy Power said.
Based on 33 analyst ratings compiled by CNN, Digital Realty has an average price target of $220, representing a 9.62% upside from the current price of $200.70.
Digital Realty (NYSE:DLR) claims to be the world’s largest cloud- and carrier-neutral data center colocation platform. Its global data center platform, called PlatformDIGITAL, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing data gravity challenges.
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