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Investing.com - Truist Securities raised its price target on DigitalBridge Group Inc. (NYSE:DBRG) to $16.00 from $15.00 on Wednesday, while maintaining a Buy rating on the digital infrastructure investment firm. The stock, currently trading at $11.08 with a market capitalization of $2.1 billion, has shown significant volatility according to InvestingPro data.
The price target increase represents a potential 44% total return for the stock, according to Truist’s analysis. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $11 to $20 per share. The firm adjusted its 2025 fee-related earnings (FRE) forecast upward to $127 million from $121 million, and its 2026 FRE forecast to $125 million from $120 million following DigitalBridge’s second-quarter 2025 results.
Truist simultaneously lowered its 2025 distributable earnings (DE) per share estimate to $0.35 from $0.50, primarily due to principal investment factors, while increasing its 2026 DE per share projection to $0.35 from $0.32.
The new price target is based on Truist’s discounted cash flow analysis of $18.17 per share using an 11% discount rate and a next-twelve-months 16x FRE target multiple on the investment management platform. The firm noted its valuation does not include any value for future potential carried interest or power capacity within DigitalBridge’s portfolio.
Truist views DigitalBridge as "uniquely positioned as a leading specialist in digital infrastructure," citing its scalable platform, strong portfolio companies including data centers and towers, deep relationship networks, and experienced operating partners as factors that can drive outperformance and accelerate fee-earning assets under management growth. InvestingPro analysis indicates the company maintains a "Fair" overall financial health score, with particularly strong performance in cash flow metrics. InvestingPro subscribers can access additional insights through the comprehensive Pro Research Report, which includes detailed analysis of DigitalBridge’s financial position and growth prospects.
In other recent news, DigitalBridge Group reported its Q2 2025 earnings, showcasing a significant earnings per share (EPS) of $0.10, which exceeded analyst expectations of $0.0629 by 58.98%. However, the company experienced a notable revenue shortfall, generating -$3.21 million compared to the anticipated $104.37 million, resulting in a surprise of -103.08%. Additionally, DigitalBridge’s portfolio company, Vantage Data Centers, announced plans to develop a $25 billion hyperscale data center campus in Shackelford County, Texas. The project, named "Frontier," will include 10 data centers covering 3.7 million square feet with a power capacity of 1.4GW. These facilities are specifically designed to support high-density GPU workloads with liquid cooling systems tailored for AI applications. Despite the revenue miss, the company’s ambitious expansion plans indicate a strategic focus on enhancing its data infrastructure capabilities. Analyst reactions to these developments have not been specified. These recent developments highlight DigitalBridge’s ongoing efforts to strengthen its position in the data center market.
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