JPMorgan raises Digital Realty Trust price target to $210 on strong results

Investing.com - JPMorgan raised its price target on Digital Realty Trust (NYSE:DLR) to $210.00 from $200.00 on Friday, while maintaining an Overweight rating on the data center REIT. The company, currently valued at $61.5 billion, maintains a "GOOD" financial health score according to InvestingPro analysis, with a 22-year track record of consistent dividend payments.

The price target increase follows Digital Realty Trust’s strong third-quarter 2025 results, which reflected record customer signings over the past year beginning to flow through to financial performance. As a prominent player in the Specialized REITs industry, the company has demonstrated solid revenue growth of 6.22% while maintaining an attractive dividend yield of 2.83%.

According to JPMorgan, the company has sold out of capacity through 2026 and is currently in discussions with top-tier, investment-grade-rated hyperscale customers for substantial capacity commitments for 2027 and beyond.

Digital Realty Trust currently has 2.9 GW of in-place IT capacity and is expanding rapidly with 730 MW under construction, including 468 MW in the United States, where 78% is already pre-leased.

The data center operator maintains significant growth potential with over 5 GW of future development capacity in its pipeline, positioning it to meet continued strong demand from cloud and AI customers.

In other recent news, Digital Realty Trust reported its third-quarter 2025 earnings, showing a mixed performance. The company experienced a notable shortfall in earnings per share (EPS), reporting $0.15 against the anticipated $0.31, a 51.61% negative surprise. However, revenue exceeded expectations, reaching $1.6 billion compared to the forecasted $1.53 billion, a 4.58% positive surprise. Following these results, TD Cowen raised its price target for Digital Realty Trust to $179, maintaining a Hold rating, while noting the company’s strong overall performance despite a slight downside in leasing activity. Citizens reiterated its Market Outperform rating with a $220 price target, acknowledging the company’s solid performance amid increased demand for space and power. Stifel also increased its price target to $210 from $205, maintaining a Buy rating, and highlighted strong performance in specific categories despite subdued leasing due to capacity constraints. These developments reflect the company’s ongoing ability to navigate market challenges and capitalize on growth opportunities.

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