Citizens reiterates Market Outperform rating on Digital Realty Trust stock

Investing.com - Citizens maintained its Market Outperform rating on Digital Realty Trust (NYSE:DLR) stock with a price target of $220.00 following the company’s third-quarter 2025 financial results. The $60.9 billion market cap REIT, currently trading at $175.39, shows strong fundamentals with a "GOOD" overall financial health score according to InvestingPro analysis.

Digital Realty Trust reported quarterly results that exceeded market expectations, prompting a slight upward revision to its guidance. The data center REIT delivered strong performance despite operating in a market experiencing significant acceleration in demand for space and power. With revenue growth of 6.22% and a 22-year track record of consistent dividend payments, the company maintains a solid financial position. InvestingPro subscribers have access to 10+ additional exclusive insights about Digital Realty’s performance and valuation metrics.

The firm noted that Digital Realty faces certain constraints compared to private equity-backed competitors due to debt limitations inherent to public companies. These limitations may restrict Digital Realty’s ability to fully capitalize on the current surge in data center demand. However, the company maintains a healthy current ratio of 1.6, indicating strong ability to meet short-term obligations.

Despite these challenges, Citizens highlighted that Digital Realty’s financial results remain robust, characterized by strong pricing, solid volumes, and power availability that particularly serves customers requiring smaller deployments across global locations.

The company’s power capacity is best suited for clients needing less than multi-hundred megawatt deployments distributed around the world, according to the research firm’s assessment.

In other recent news, Digital Realty Trust reported its third-quarter 2025 earnings, revealing a significant gap in earnings per share (EPS) compared to forecasts. The company posted an EPS of $0.15, which was notably below the expected $0.31, resulting in a 51.61% negative surprise. However, Digital Realty Trust’s revenue for the quarter reached $1.6 billion, surpassing the forecasted $1.53 billion and marking a 4.58% positive surprise. Following these results, Stifel raised its price target for Digital Realty Trust from $205 to $210, maintaining a Buy rating on the stock. Stifel highlighted that the quarter’s performance was bolstered by strong results in the 0-1MW and Interconnection categories, despite subdued leasing due to capacity constraints projected to last until the second half of 2026. These recent developments reflect a mixed performance for the company, with revenue growth overshadowing the EPS shortfall.

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