Digital Realty Trust (DLR) Research Coverage Started at Credit Suisse Group
Credit Suisse Group started coverage on shares of Digital Realty Trust (NYSE:DLR) in a report released on Wednesday, MarketBeat Ratings reports. The brokerage issued a neutral rating and a $95.00 price target on the real estate investment trust’s stock.
“We conclude that the company remains in transition, transitioning away from its older pure wholesale model. The Cloud Has Four Walls: Multi-tenant data centers are a pure play to capture the proliferation of the cloud, estimated by I.H.S. Markit to grow to a ~$21bn market at a ~9% CAGR over the coming five years, driven by accelerating data growth funneled from cloud providers Amazon Web Services, Google Cloud, Microsoft Azure, and IBM and lifted by enterprise IT spending trends as traditional enterprises move toward hybrid cloud IT infrastructures. Our 2018 Outlook highlights our industry views extensively. Valuation—Neutral, $95 Target Price: Our valuation is based on 2019E AFFO per share of $6.12 and 15.5x P/FY2 AFFO multiple – a valuation framework we apply to large capitalization and mature data center REITs. Risks: Key investment risks include technological disruption, market competition, rising interest rates, and REIT qualification loss.”,” Credit Suisse Group’s analyst wrote.
A number of other research firms have also weighed in on DLR. ValuEngine raised shares of Digital Realty Trust from a hold rating to a buy rating in a research note on Sunday, December 31st. Wells Fargo & Co raised shares of Digital Realty Trust from a market perform rating to an outperform rating and upped their price objective for the stock from $109.31 to $120.00 in a research note on Friday, December 22nd. Zacks Investment Research lowered shares of Digital Realty Trust from a hold rating to a sell rating in a research note on Monday, January 15th. KeyCorp reaffirmed a buy rating and issued a $130.00 price objective on shares of Digital Realty Trust in a research note on Tuesday, September 26th. Finally, TheStreet lowered shares of Digital Realty Trust from a b rating to a c+ rating in a research note on Monday, October 30th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and eleven have given a buy rating to the stock. The stock has a consensus rating of Buy and an average price target of $123.40.
Digital Realty Trust (DLR) traded up $0.34 during trading hours on Wednesday, reaching $107.30. 1,463,248 shares of the company were exchanged, compared to its average volume of 1,310,000. Digital Realty Trust has a 52 week low of $101.70 and a 52 week high of $127.23. The stock has a market capitalization of $22,040.00, a price-to-earnings ratio of 87.24, a PEG ratio of 2.17 and a beta of -0.09. The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 0.85.
Digital Realty Trust (NYSE:DLR) last released its quarterly earnings data on Wednesday, October 25th. The real estate investment trust reported $1.51 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.40 by $1.11. Digital Realty Trust had a net margin of 11.71% and a return on equity of 5.15%. The company had revenue of $609.90 million during the quarter, compared to analyst estimates of $595.49 million. During the same period in the prior year, the firm earned $1.44 earnings per share. The firm’s revenue for the quarter was up 11.6% compared to the same quarter last year. sell-side analysts predict that Digital Realty Trust will post 6.1 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, January 12th. Shareholders of record on Friday, December 15th were issued a $0.93 dividend. The ex-dividend date of this dividend was Thursday, December 14th. This represents a $3.72 dividend on an annualized basis and a yield of 3.47%. Digital Realty Trust’s dividend payout ratio is presently 302.44%.
A number of institutional investors have recently made changes to their positions in DLR. Cohen & Steers Inc. raised its holdings in Digital Realty Trust by 100.4% in the third quarter. Cohen & Steers Inc. now owns 13,229,368 shares of the real estate investment trust’s stock worth $1,565,431,000 after purchasing an additional 6,626,871 shares in the last quarter. Daiwa Securities Group Inc. raised its holdings in Digital Realty Trust by 41.5% in the third quarter. Daiwa Securities Group Inc. now owns 6,474,187 shares of the real estate investment trust’s stock worth $766,091,000 after purchasing an additional 1,897,642 shares in the last quarter. AEW Capital Management L P raised its holdings in Digital Realty Trust by 295.4% in the third quarter. AEW Capital Management L P now owns 1,580,668 shares of the real estate investment trust’s stock worth $187,040,000 after purchasing an additional 1,180,868 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in shares of Digital Realty Trust by 79.3% during the third quarter. Ameriprise Financial Inc. now owns 2,332,689 shares of the real estate investment trust’s stock valued at $276,860,000 after acquiring an additional 1,032,004 shares in the last quarter. Finally, Capital International Investors increased its holdings in shares of Digital Realty Trust by 253.1% during the second quarter. Capital International Investors now owns 1,352,500 shares of the real estate investment trust’s stock valued at $152,765,000 after acquiring an additional 969,500 shares in the last quarter. Institutional investors and hedge funds own 98.34% of the company’s stock.
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Digital Realty Trust Company Profile
Digital Realty Trust, Inc is a real estate investment trust (REIT). The Company is engaged in the business of owning, acquiring, developing and operating data centers. The Company is focused on providing data center and colocation solutions for domestic and international tenants across a range of industry verticals ranging from financial services, cloud and information technology services, to manufacturing, energy, healthcare and consumer products.
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