Interactive Brokers shares jump as it secures spot in S&P 500
On Monday, JMP Securities analyst Greg Miller maintained a Market Outperform rating on Digital Realty Trust (NYSE:DLR) with a steady price target of $220.00. Miller’s analysis followed the company’s first-quarter results for 2025, which prompted a revision of the firm’s revenue projections and funds from operations (FFO) estimates for the year. The stock, currently trading at $159.88, has shown strong momentum with a 9.25% gain over the past week. According to InvestingPro data, analyst targets for the $54.85B market cap company range from $139 to $220.
Digital Realty Trust, a leading global provider of data center, colocation, and interconnection solutions, reported lower-than-expected rental revenue affected by foreign exchange headwinds and a decrease in reported power pass-through revenue. In light of these factors, JMP Securities adjusted its total revenue projections downward for the year. InvestingPro analysis shows the company maintains strong fundamentals with a 54.17% gross profit margin and has consistently paid dividends for 22 consecutive years, demonstrating financial stability despite market fluctuations.
Despite the reduction in rental and power pass-through revenues, the analyst sees a silver lining. The full-year power costs are anticipated to be slightly better than previously estimated, leading to a marginal decrease in the core FFO per share estimate to $7.10 from $7.11. Moreover, the adjusted funds from operations (AFFO) per share estimate for 2025 was revised upwards to $6.66 from $6.49, reflecting a $0.18 per share beat compared to JMP Securities’ initial estimate. This improvement is attributed to lower-than-expected recurring capital expenditures in the first quarter.
Miller’s reiteration of the Market Outperform rating indicates confidence in Digital Realty Trust’s performance despite the adjustments. The company’s stock price target remains unchanged at $220.00, suggesting that the analyst believes the stock has the potential to grow and provide returns to investors based on the company’s fundamental strength and market position.
In other recent news, Digital Realty Trust Inc . reported its first-quarter 2025 financial results, showcasing a 6% year-over-year increase in core funds from operations (FFO) per share, reaching $1.77. The company’s data center revenue also rose by 7%, despite an earnings per share (EPS) of $0.27, which fell short of the forecasted $0.33. In light of these results, Digital Realty raised its full-year core FFO guidance to a range of $7.05-$7.15 per share, reflecting confidence in continued growth. The company has seen strong demand from AI-related projects, which now account for over two-thirds of total leasing. Additionally, Digital Realty expanded its global presence by launching new data centers, including a significant entry into the Indonesian market. Analysts from RBC Capital Markets and JPMorgan inquired about the company’s leasing environment and development costs, with Digital Realty indicating a strong leasing pipeline and minimal anticipated impact from potential tariffs. The company’s strategic initiatives and robust leasing activities have contributed to a record backlog of signed but not commenced leases, totaling over $1.3 billion.
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