Scotiabank has revised its price target for Digital Realty (DLR, Financial), reducing it slightly from $208 to $206, while maintaining an Outperform rating on the company's shares. This adjustment comes as part of a strategic review of select stocks within the technology, media, and telecom (TMT) infrastructure sector, in anticipation of the upcoming first-quarter earnings reports.
The bank's analyst, Maher Yaghi, highlighted that, while recent market fluctuations have not indicated any substantial delays in artificial intelligence (AI) projects, there has been a noticeable slowdown in enterprise IT project execution. This deceleration could impact significant digital transformation initiatives, potentially affecting future growth trajectories.
The primary reason for the lowered price target is an assumption of a higher long-term cost of debt, which could influence Digital Realty's financial outlook. Despite these adjustments, Scotiabank remains positive about the company's prospects, as reflected in the continued Outperform rating. Investors will be watching closely as the company prepares to release its quarterly performance data.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Digital Realty Trust Inc (DLR, Financial) is $184.24 with a high estimate of $220.00 and a low estimate of $129.00. The average target implies an upside of 25.90% from the current price of $146.34. More detailed estimate data can be found on the Digital Realty Trust Inc (DLR) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Digital Realty Trust Inc's (DLR, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Digital Realty Trust Inc (DLR, Financial) in one year is $142.39, suggesting a downside of 2.7% from the current price of $146.34. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Digital Realty Trust Inc (DLR) Summary page.
