
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust has demonstrated robust financial performance, with total data center revenue growth of 11% year-over-year in Q2, supported by strong leasing spreads and rent escalators tied to inflationary measures. Notably, the 0-1MW rental rates experienced a cash basis increase of 4.2%, while greater than 1MW renewals stood out with a remarkable 14.0% increase on a cash basis, surpassing previous guidance expectations. This positive momentum is further reflected in same capital cash net operating income (NOI) growth, which increased by 4.4% year-over-year, driven by a 5.9% growth in data center revenue.
Bears say
Digital Realty Trust has experienced a significant decline in GAAP annualized rent signed in the Americas, dropping from $187.9 million in the first quarter to $47.3 million in the second quarter, indicating weakened demand for hyperscale leasing. The company's growth is highly contingent on the successful development of existing and new properties; any delays or unexpected costs could negatively impact its financial health and growth prospects. Additionally, Digital Realty faces intense competition that may hinder occupancy rates and rental increases, alongside concerns regarding power availability and the potential obsolescence of its data center infrastructure, further complicating its operational landscape.
This aggregate rating is based on analysts' research of Digital Realty Trust and is not a guaranteed prediction by Public.com or investment advice.
DLR Analyst Forecast & Price Prediction
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