
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust has demonstrated a robust financial outlook, as evidenced by the increase in full-year 2024 guidance for total cash renewal spreads from 5-7% to 8-10% following favorable leasing volume and pricing. The company boasts a significant backlog of signed leases totaling $760 million, which underpins expectations for accelerated revenue and AFFO growth, suggesting potential upside beyond the 2025 core FFO growth forecast of mid-single digits. Additionally, ongoing strong demand from hyperscalers for data center space, coupled with positive cash re-leasing spreads since 1Q23, reinforces a favorable trajectory for Digital Realty's financial performance.
Bears say
Digital Realty Trust faces a negative outlook primarily due to a slowdown in hyperscale cloud growth, influenced by capacity constraints and disappointing earnings from major cloud providers like Microsoft and Google. As the company has shifted focus away from cold shells to higher-level service offerings, it may struggle with expiring contracts in 2026 and beyond, which are anticipated to decline. Additionally, recent management changes at key cloud service firms could further impair Digital's leasing opportunities, signaling potential weaknesses across the market.
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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