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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Experts agree that DLR is a fundamentally strong REIT with expanding net profit margins and ROE, generating good free cash flows. However, there are concerns about its declining FFO to debt ratio and high valuation. Despite this, there is potential for growth due to the underlying secular trend in the data center industry and a recovery story in the stock's chart.

Consensus
Positive
Valuation
Fair Value
Similar
EQIX, EQIX-N
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

DLR is a fundamentally strong REIT, with expanding net profit margins and ROE, and it generates good free cash flows. Its yield is attractive, although its Funds From Operations (FFO) to debt have been declining over the past few years, indicating its debt levels have increased at a faster rate than FFO. It trades at a high valuation, but this can be justified given its strong fundamentals. Given a potential peak in interest rates, the underlying secular trend growth in the data center industry, and its strong fundamentals, we would be comfortable holding or adding slowly to this name.
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Financial Services
PARTIAL BUY

Buy in tranches with each increase of 0.25% in interest rates. Likes DLR.

Financial Services
WATCH

The chart shows a nice uptrend since late May, and coming after a 2-year downtrend before peaking at $180. It's a recovery story. Is there enough interest for this to break above $120 to $140? Watch weekly closes, rather than daily closes, because there are five data points in a week.

Financial Services
BUY
AHY: Accidental high-yielding stocks that have fallen so far that their dividends now pay huge. A REIT that runs data centres. Usually pricey, now is the time to buy on weakness. Shares have fallen from $178 to $128 today. Pays a 3.8% dividend and could go higher. The data centre buiness isn't vanishing anytime.
Financial Services
HOLD
Smallest position in his fund. Prefers EQIX and SWCH, as these are more defensible businesses with better pricing power. Likes the space, selloff has been overdone. See his Top Picks.
Financial Services
COMMENT
Which of the two is better. They are in the digital realty space. DLR is difficult to grow because of the size. Of the two he would prefer SWCH.
Financial Services
HOLD
Big Daddy in data centre space. Sector benefits from online and mobile device activity. Great sector. Synergy for seeing data centres at the foot of the data towers, and over the next 5 years, you should see this convergence. A lot of the growth is already built in.
Financial Services
BUY
For a retirement fund This is the best data centre stock.
Financial Services
HOLD
Focus on data centres in key markets globally. Secular themes that work, with data consumption and the cloud. Supply has been an issue, but now more balanced. Trades at a nice premium, whereas he's always trying to find discounts. Long-term secular growth. Trim on strength.
Financial Services
PAST TOP PICK

(A Top Pick Dec 06/19, Up 22%) Carrier-neutral data centre. Now prefers Equinix. 12-month price target of $165.50, so there's still some runway.

Financial Services
PAST TOP PICK
(A Top Pick Dec 06/19, Up 22%) Data centre REIT. A bit different, because they actually own their sites. Interest rate sensitive, so it's been held back. Just bought a complementary Netherlands company. Bullish on it. His price target is $US165. Yield is 3%.
Financial Services
PAST TOP PICK
(A Top Pick Dec 06/19, Up 21%) Price target of $165. Carrier-neutral data centre. Smart acquisitions. Not a bad buy here. Yield is 3%.
Financial Services
DON'T BUY

Equinix vs. Digital Realty They're both the largest US data centres. Equinix focuses on interconnection and co-location, housing thousands of businesses within the same business centre. Digital Realty focuses on hyperscale, which provides buildings and server racks for megacaps like Google. The latter business has fewer barriers to entry and is far more competitive with less pricing power. He prefers Equinix's model.

Financial Services
COMMENT

He does not own DLR presently, but has in the past. They are involved in the data centre business. He currently owns EQIX, who partnered with BCE to manage their data centres. If you own DLR, stick with it. If you are looking at getting into the space, consider EQIX.

Financial Services
premium

It's a Monthly Gems opinion which is available only for Premium members

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
Staying on the tech theme is this REIT which holds data centres in a dozen countries, including the U.S., South Korea, and most recently Hong Kong. Clients include Facebook. It's no secret that cloud computing is booming, encouraged by the current work-at-home trend, and Digital Realty is in the perfect place to capitalize. Analysts don't talk about DLR much, but its steady performance and growth outlook warrant attention. True, DLR lags the powerful Nasdaq 14% to 24%, but it blows past the S&P and Dow. It pays a steady 3% dividend yield and is trading comfortably above its 50- and 200-day moving averages. DLR offers a one-year return of 24.5% with YOY revenue growth of 5.34% and an 18% profit margin. It currently trades at its price target, and keeps bubbling under its 52-week high of $158. DLR is less of a trading stock than AMT, but serves better as a long-term hold.
Financial Services
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Digital Realty Trust(DLR-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for Digital Realty Trust is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Digital Realty Trust(DLR-N) Frequently Asked Questions

What is Digital Realty Trust stock symbol?

Digital Realty Trust is a American stock, trading under the symbol DLR-N on the New York Stock Exchange (DLR). It is usually referred to as NYSE:DLR or DLR-N

Is Digital Realty Trust a buy or a sell?

In the last year, 2 stock analysts published opinions about DLR-N. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Digital Realty Trust.

Is Digital Realty Trust a good investment or a top pick?

Digital Realty Trust was recommended as a Top Pick by on . Read the latest stock experts ratings for Digital Realty Trust.

Why is Digital Realty Trust stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Digital Realty Trust worth watching?

2 stock analysts on Stockchase covered Digital Realty Trust In the last year. It is a trending stock that is worth watching.

What is Digital Realty Trust stock price?

On 2024-04-12, Digital Realty Trust (DLR-N) stock closed at a price of $142.49.