A Closer Look at 11 Analyst Recommendations For Digital Realty Trust
Digital Realty Trust (NYSE:DLR) underwent analysis by 11 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 4 | 3 | 2 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 3 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 1 | 0 |
| 3M Ago | 0 | 0 | 2 | 1 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $152.73, with a high estimate of $175.00 and a low estimate of $118.00. Observing a 10.94% increase, the current average has risen from the previous average price target of $137.67.
Diving into Analyst Ratings: An In-Depth Exploration
The standing of Digital Realty Trust among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Erik Rasmussen | Stifel | Raises | Buy | $175.00 | $165.00 |
| Omotayo Okusanya | Mizuho | Announces | Outperform | $170.00 | - |
| James Schneider | Goldman Sachs | Announces | Buy | $175.00 | - |
| Richard Choe | JP Morgan | Raises | Overweight | $175.00 | $150.00 |
| Ari Klein | BMO Capital | Raises | Outperform | $170.00 | $144.00 |
| Jonathan Atkin | RBC Capital | Raises | Outperform | $160.00 | $144.00 |
| Brendan Lynch | Barclays | Raises | Underweight | $123.00 | $119.00 |
| Matthew Niknam | Deutsche Bank | Raises | Hold | $145.00 | $143.00 |
| John Hodulik | UBS | Raises | Neutral | $147.00 | $143.00 |
| Michael Elias | TD Cowen | Raises | Hold | $122.00 | $116.00 |
| Phani Kanumuri | HSBC | Raises | Reduce | $118.00 | $115.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Digital Realty Trust. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Digital Realty Trust compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Digital Realty Trust's stock. This examination reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Digital Realty Trust's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Digital Realty Trust analyst ratings.
Discovering Digital Realty Trust: A Closer Look
Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. The company operates as a real estate investment trust.
Understanding the Numbers: Digital Realty Trust's Finances
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Challenges: Digital Realty Trust's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -0.57%. This indicates a decrease in top-line earnings. When compared to others in the Real Estate sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 20.38%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Digital Realty Trust's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.48%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.63%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Digital Realty Trust's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.0.
Understanding the Relevance of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.