What The Telex Acquisition Means For Digital Realty Trust - Digital Realty Trust (NYSE:DLR)

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.

Digital Realty Trust, Inc. (NYSE: DLR) acquired Telx from two private equity firms for $1.886 billion back in July.
The transaction closed on 10/9, prompting Ross Smotrich of Barclays to reinstate coverage of the stock with an Overweight rating and $75 price target.
The analyst noted the acquisition enables the company to grow its retail presence and enter the high margin interconnection segment.

27% profit every 20 days?

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Digital Realty Trust, an REIT (real estate investment trust) that owns, acquires, develops and manages technology-related real estate assets,

announced in July that it has entered into an agreement to acquire Telx, a privately held co-location and interconnection provider for almost $1.9 billion.The transaction officially closed on October 9, prompting Ross Smotrich of Barclays to reassume coverage of Digital Realty with an Overweight rating and $75 price target which is based on a $73.27 discounted cash flow (60 percent), $80.31 net asset value (20 percent) and $74.39 sentiment/regression value (20 percent). According to Smotrich, the acquisition should be viewed positively as it enables Digital Realty to expand its retail presence and enter the high margin interconnection business. The analyst added that pro-forma, the company's revenue will be comprised of 14 percent co-location (up from seven percent) and nine percent interconnection (up from zero), while the remainder of the business will consist of the company's traditional wholesale offering."The acquired portfolio compliments Digital Realty's existing footprint both geographically and by the fact that Telx was previously a large Digital Realty customer," Smotrich concluded. "Finally, several of the acquired assets are under-utilized, creating significant lease-up potential."