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Investing.com - Citizens JMP analyst reiterated a Market Outperform rating and $220.00 price target on Digital Realty Trust (NYSE:DLR) on Monday. The data center REIT, currently trading at $177.91 with a market capitalization of $61.69 billion, has demonstrated consistent performance with a 25.81% return over the past year.
The firm raised its 2025 AFFO per share estimate to $6.68 from $6.66 previously, and its 2026 AFFO per share estimate to $7.26 from $7.24, citing outperformance in the second quarter of 2025, sustained leasing momentum, and continued pricing power. According to InvestingPro data, the company’s revenue growth stands at 6.22%, supporting the positive outlook.
Citizens JMP highlighted Digital Realty Trust’s backlog of $829 million in signed leases combined with positive re-leasing spreads as factors that provide for accelerated growth in 2025 and beyond as leases commence.
The firm noted that at approximately 25.0x 2026 estimated AFFO, the stock remains attractive for purchase, with room for multiple expansion driven by mid- to high-single-digit revenue and AFFO growth.
Citizens JMP maintained its $220 price target, which implies approximately 30x 2026 estimated AFFO, with the firm citing industry tailwinds from accelerating AI adoption as a supporting factor.
In other recent news, Digital Realty Trust Inc . reported its second-quarter earnings for 2025, significantly surpassing market expectations. The company announced an earnings per share of $2.94, which was much higher than the anticipated $0.41, resulting in a remarkable surprise of 617.07%. Additionally, Digital Realty’s revenue exceeded forecasts, reaching $1.49 billion compared to the expected $1.44 billion. These developments highlight a strong performance for the company during this period. Analyst reactions to these results may follow, potentially influencing future assessments of the company’s financial outlook. Investors will likely keep a close watch on any further updates or announcements from Digital Realty.
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