Analysts' ratings for Digital Realty Trust (NYSE:DLR) over the last quarter vary from bullish to bearish, as provided by 7 analysts.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 2 | 2 | 0 | 0 |
| Last 30D | 2 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 2 | 2 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $183.71, along with a high estimate of $200.00 and a low estimate of $164.00. This current average has decreased by 6.61% from the previous average price target of $196.71.
Analyzing Analyst Ratings: A Detailed Breakdown
In examining recent analyst actions, we gain insights into how financial experts perceive Digital Realty Trust. The following summary 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 |
|---|---|---|---|---|---|
| Michael Rollins | Citigroup | Lowers | Buy | $190.00 | $212.00 |
| Erik Rasmussen | Stifel | Lowers | Buy | $200.00 | $210.00 |
| Phani Kanumuri | HSBC | Raises | Buy | $193.00 | $187.00 |
| Maher Yaghi | Scotiabank | Lowers | Sector Outperform | $189.00 | $206.00 |
| Brendan Lynch | Barclays | Raises | Equal-Weight | $164.00 | $161.00 |
| Omotayo Okusanya | Mizuho | Lowers | Outperform | $180.00 | $191.00 |
| Michael Funk | B of A Securities | Lowers | Neutral | $170.00 | $210.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Digital Realty Trust. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Digital Realty Trust compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Digital Realty Trust's stock. This comparison reveals trends 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.
Delving into Digital Realty Trust's Background
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 deemphasized cold shells and now primarily provides higher-level service to tenants that outsource their related IT needs to Digital. The company operates as a real estate investment trust.
Digital Realty Trust's Financial Performance
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Digital Realty Trust's revenue growth over a period of 3M has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 10.2%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Real Estate sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.65%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Digital Realty Trust's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.26%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Digital Realty Trust's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.12%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.88, Digital Realty Trust adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Basics of Analyst Ratings
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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