UBS has upgraded Digital Realty Trust Inc (NYSE: DLR) from “Neutral” to “Buy”, as it sees potential for further upside for the stock on the back of continued robust demand for data center services.
The investment bank also raised its 12-month price target from $147 per share to $205 per share.
“After years of stable to declining funds from operations per share, we expect 5% growth in 2025, accelerating to 7% in 2026 and 10% in 2027,” UBS analysts wrote in an investor note.
Such an outlook is supported by stronger renewal spreads, higher yields from new developments and sustained demand in artificial intelligence and hyperscale, the bank added.
Stock Performance
The shares of Digital Realty Trust Inc (DLR) closed 0.55% ($0.99) higher at $180.87 in New York on Wednesday, as they extended the gain from the previous market session.
The company’s total market cap now stands at $61.154 billion.
The shares of Digital Realty Trust Inc (DLR) went up 31.76% in 2024, compared with a 23.30% gain for the benchmark index, S&P 500 (SPX).
The company’s shares have risen another 2.00% so far this year.
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