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Investing.com - Stifel raised its price target on Digital Realty Trust (NYSE:DLR) to $210.00 from $205.00 on Friday, while maintaining a Buy rating on the stock. With a market capitalization of $61 billion and analyst targets ranging from $141 to $220, InvestingPro data indicates the stock is currently trading above its Fair Value.
The price target increase follows Digital Realty Trust’s third-quarter results, which exceeded expectations across all metrics. Stifel noted that while leasing remains relatively subdued due to capacity constraints expected to last until the second half of 2026, the quarter was strengthened by strong performance in the 0-1MW and Interconnection categories. The company maintains strong financials with a healthy 54.5% gross profit margin and has consistently paid dividends for 22 consecutive years, according to InvestingPro data.
Digital Realty Trust reported an elevated backlog of $852 million and renewal pricing of 8.0% on a cash basis. The company raised its annual guidance by 50 basis points, including increases to revenue guidance (+$75 million), adjusted EBITDA (+$75 million), and cash flow from operations per share (+$0.15 to $7.35 at the midpoint, representing 9.5% year-over-year growth). This aligns with the company’s solid 6.2% revenue growth over the last twelve months. For deeper insights into Digital Realty Trust’s financial health and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro.
The data center operator maintains a gross development pipeline of approximately $9.7 billion with an 11.6% stabilized yield. The company also reported 5GW of buildable capacity supported by more than $15 billion in private capital.
Stifel highlighted that Digital Realty Trust is experiencing a robust pipeline of demand from artificial intelligence-oriented use cases, which is expected to drive multi-year growth as new capacity becomes available.
In other recent news, Digital Realty Trust Inc. announced its third-quarter 2025 earnings, which revealed a discrepancy between earnings per share (EPS) and projections. The company reported an EPS of $0.15, which was significantly lower than the expected $0.31, resulting in a 51.61% negative surprise. However, Digital Realty exceeded revenue forecasts, achieving $1.6 billion compared to the anticipated $1.53 billion, marking a 4.58% positive surprise. These developments are part of the company’s ongoing financial performance updates. The earnings results highlight a mixed outcome, with revenue surpassing expectations while EPS fell short. No additional company news, such as mergers or analyst upgrades or downgrades, was reported in conjunction with these earnings. Investors are likely to consider these results as they evaluate the company’s financial health and future prospects. The revenue figures, in particular, may be of interest to stakeholders analyzing Digital Realty’s market position.
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