
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust has raised its full-year 2024 guidance for total cash renewal spreads to 8-10%, reflecting better-than-expected leasing volume and pricing, signifying robust operational momentum. The company's substantial backlog of signed leases, valued at $760 million, equates to approximately 20% of annualized in-place data center revenue, indicating a solid foundation for accelerated growth in 2025 and beyond. Additionally, strong demand trends, particularly from hyperscalers, and consistently positive cash re-leasing spreads highlight ongoing strength in the market, positioning Digital Realty for potential revenue and AFFO growth upside.
Bears say
Digital Realty Trust faces a negative outlook primarily due to a slowdown in hyperscale cloud growth, which is evidenced by disappointing earnings reports from leading providers like Microsoft and Google, raising concerns about market demand for data centers. The company's transition away from offering "cold shells" to focus on higher-level services could limit its flexibility in adapting to emerging market conditions, especially as expiring lease rates begin to decrease significantly in 2026 and beyond. Furthermore, recent management changes within major cloud providers may have adversely impacted their decision-making processes regarding data center leasing, potentially leading to reduced demand for Digital Realty's offerings.
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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