Breaking Down Digital Realty Trust: 9 Analysts Share Their Views

Ratings for Digital Realty Trust DLR were provided by 9 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $187.11, along with a high estimate of $220.00 and a low estimate of $139.00. A decline of 1.58% from the prior average price target is evident in the current average.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Digital Realty Trust by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Digital Realty Trust. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Digital Realty Trust compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Digital Realty Trust's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Digital Realty Trust's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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 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.

Financial Milestones: Digital Realty Trust's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Digital Realty Trust's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.75% as of 31 March, 2025, showcasing a substantial increase in 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: Digital Realty Trust's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 7.09%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Digital Realty Trust's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.48%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Digital Realty Trust's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.22%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Digital Realty Trust's debt-to-equity ratio is below the industry average at 0.89, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.