
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust has exhibited strong financial performance, with total data center revenue growth of 11% year-over-year in Q2, indicating robust demand and effective leasing strategies, particularly reflected in the high renewal rates. The company reported a significant 14% increase in renewals for greater than 1MW deals on a cash basis, greatly exceeding prior guidance and demonstrating the effectiveness of its higher-level service offerings. Additionally, the same capital cash NOI growth increased by 4.4% year-over-year, bolstered by a 5.9% rise in data center revenue, further solidifying the company's positive growth trajectory.
Bears say
Digital Realty Trust demonstrated a significant decline in GAAP annualized rent signed in the Americas, dropping to $47.3 million in the second quarter from $187.9 million in the first quarter, indicative of easing hyperscale leasing demand. The company also faces substantial competition, which could hinder its ability to maintain occupancy and rental rates, compounded by potential tenant defaults due to adverse global economic conditions. Moreover, challenges related to successful development projects, potential obsolescence of data center infrastructure, and difficulties in upgrading systems introduce risks that may adversely affect Digital Realty's growth prospects and overall financial condition.
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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