
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust demonstrated strong performance metrics, highlighted by a 4.2% increase in rental rates on a cash basis for the 0-1MW segment and a notable 14.0% increase for larger than 1MW renewals, significantly exceeding prior guidance. The company reported an 11% year-over-year growth in total data center revenue for Q2, driven by robust leasing spreads and the prevalence of rent escalators in new bookings. Additionally, same capital cash NOI grew 4.4% year-over-year in Q2, reflecting the favorable conditions in data center demand and revenue growth.
Bears say
Digital Realty Trust has reported a significant sequential decline in total GAAP annualized rent signed in the Americas, dropping to $47.3 million in 2Q from $187.9 million in 1Q, driven by easing hyperscale leasing. The company faces substantial competition and challenges related to tenant liquidity, which could lead to increased defaults and difficulties in enforcing lease agreements, thus affecting its financial stability. Additionally, ongoing issues with project development, potential obsolescence of infrastructure, and reduced rent escalators may further impede the company'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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