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On Friday, DigitalBridge Group Inc. (NYSE: DBRG) shares managed to recover from a significant pre-market drop to close with a 4% gain at $8.74, following a reaffirmation of a Market Outperform rating and a $16.00 price target by JMP analysts. The company, which specializes in digital infrastructure investments and currently carries a market capitalization of $1.54 billion, was noted for its progress towards its 2025 capital raising goal despite the volatility in its carried interest and reported revenues. According to InvestingPro analysis, the stock appears to be trading near its Fair Value, with analysts maintaining price targets ranging from $13 to $20.
JMP analysts highlighted DigitalBridge’s transition to a full multistrategy fund, which is increasingly poised to satisfy the capital requirements of digital infrastructure companies. This strategic shift is seen as a key factor in the company’s potential to meet its $40 billion fee-earning assets under management (FEUUM) target by 2025. The analyst’s confidence in DigitalBridge’s trajectory was underscored by maintaining the price target, which suggests a valuation of approximately 27 times the forecasted 2026 fee-related earnings (FRE).
The company’s stock experienced a tumultuous trading session, plummeting roughly 27% in pre-market trading. The stock managed to rebound throughout the day, ultimately closing with a 4% increase. This volatility is characteristic of DBRG, which has a beta of 1.69 and has seen its share price decline 22.43% year-to-date. InvestingPro subscribers have access to 8 additional key insights about DBRG’s volatility patterns and market performance metrics.
DigitalBridge’s ability to navigate the complexities of carried interest and revenue generation was also noted by the analysts. Carried interest, a share of investment profits that is paid to investment managers, can lead to revenue fluctuations, which appeared to impact the stock’s performance initially. The company reported revenue of $595.14 million in the last twelve months, though this represents a 26.61% decline. Despite this, the firm’s underlying strength in its individual digital infrastructure businesses was emphasized as a positive factor, with analysts expecting profitability improvements in the coming year.
In closing, JMP analysts reiterated their Market Outperform rating for DigitalBridge, signaling their belief in the company’s continued growth and ability to achieve its stated financial targets. The $16.00 price target remains in place, reflecting the analysts’ expectation for the company’s future performance.
In other recent news, DigitalBridge Group Inc. reported its first-quarter 2025 earnings, delivering an earnings per share (EPS) of $0.29, which significantly exceeded analysts’ expectations of $-0.004. Despite the strong EPS performance, the company’s revenue of $45.45 million fell short of the forecasted $102.21 million. DigitalBridge also reported an 80% year-over-year increase in fee-related earnings, reaching $35 million, and raised $1.2 billion in new commitments to support a major acquisition in the fiber business. The company reaffirmed its guidance for 2025, projecting 10-20% growth in fee-related earnings and targeting $40 billion in fee revenue. Additionally, DigitalBridge was involved in a notable transaction where Zayo, a portfolio company, announced the acquisition of Crown Castle (NYSE:CCI)’s fiber business for $4.5 billion. Analyst firms like Raymond (NSE:RYMD) James and JPMorgan have shown interest in the company’s strategic direction and its resilience amid market volatility. DigitalBridge continues to focus on its private credit platform, with plans to deploy up to $2 billion over the course of 2025.
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