STAG Industrial, Inc. (NYSE:STAG) is one of the Best Digital Infrastructure REITs to Buy According to Analysts. On April 29, TheFly reported that Evercore ISI raised its price target on STAG to $44 from $42 and maintained an Outperform rating on the shares following the company’s release of its first-quarter earnings results.
On April 28, STAG reported a 9% increase in its revenues in the first quarter of the year to $224 million from $205.6 million in the same period last year. STAG Industrial President and CEO Bill Crooker said first-quarter industrial leasing velocity and volume were healthy. In the earnings call, he said:
“Year-over-year absorption continues to improve. Notably, the multiyear weakness in demand for big box product has reversed with vacancy in larger spaces decreasing in many markets. This has not been limited to larger spaces, however, with strong activity in the 150,000 to 250,000 square foot segment of the sector where STAG’s portfolio predominantly sits. The market is benefiting from a more recent demand driver tied to the rapid acceleration of data center construction.”
Crooker said that with third-party logistics providers supporting these data center developments, a new segment of leasing demand for traditional warehouse facilities has emerged.
“Since the beginning of 2025, we have signed 8 leases totaling 1.6 million square feet to data center-related tenants. New supply also remains subdued with approximately 40% of new supply constructed for build-to-suit projects, above historical averages. We continue to expect national vacancy rates to peak in the coming months with an inflection point in the back half of 2026.”
Crooker noted that the company is seeing growing demand from data center tenants, particularly in the Southeast and Midwest markets, such as in Ohio and South Carolina, noting that the company has signed leases in these areas. He added that the company anticipates further demand from data center-related tenants.
According to 10 analyst ratings compiled by CNN, 70% rated STAG Hold while 30% rated it Buy. As of May 1, STAG has a median price target of $41.50, a 7.57% upside from the current price of $38.58.
STAG Industrial, Inc. (NYSE:STAG) is a real estate investment trust (REIT) focused on the acquisition and operation of single-tenant, industrial properties throughout the United States.
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