
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust has demonstrated a robust financial outlook, bolstered by increased full-year 2024 guidance for total cash renewal spreads, which were raised from 5-7% to 8-10% following better-than-expected leasing volume and pricing. The company's substantial backlog, amounting to $760 million in signed leases, represents approximately 20% of annualized in-place data center revenue, suggesting strong revenue and Adjusted Funds from Operations (AFFO) growth potential in 2025 and beyond. Additionally, persistent high demand from hyperscalers and positive cash re-leasing spreads, which have shown consistent growth since the first quarter of 2023, further underpin the optimistic financial outlook for Digital Realty.
Bears say
Digital Realty Trust faces a negative outlook primarily due to a slowdown in hyperscale cloud growth, evidenced by below-expectation cloud revenue increases reported by major clients like Microsoft and Google. The company's shift away from cold shells to higher-level services may impact its leasing strategy amid expiring rates stepping down in 2026, presenting potential challenges to revenue stability. Furthermore, recent management changes within key segments of its major clients could hinder leasing decisions, exacerbating uncertainties in Digital Realty's business performance going forward.
This aggregate rating is based on analysts' research of Digital Realty Trust and is not a guaranteed prediction by Public.com or investment advice.
DLR Analyst Forecast & Price Prediction
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