UPDATE: Collins Stewart Raises Target to $70 on Digital Realty Trust
Collins Stewart reiterates its Neutral rating on Digital Realty Trust (NYSE: DLR) as it believes consolidation remains key to the company's ability to sustain solid performance in latest quarter. Collins Stewart raises its price target to $70 as it rolls its estimates forward.
Collins Stewart says, "We continue to believe that DLR will continue to grow at solid double digit rates only insofar as the company is capable of making additional acquisitions at attractive and accretive rates. Although attractive acquisitions (such as 365 Main) remain possible, we believe that record low interest rate for a likely extended period of time will only further drive down cap rate, making it increasingly difficult for attractive acquisitions."
DLR closed at $69.93 a share on Friday.
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