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Hot inflation cools Wall Street, TSX climbs13 Recession-Proof Stocks for Portfolio SafetyThis summary was created by AI, based on 4 opinions in the last 12 months.
Digital Realty Trust (DLR-N) is positioned as a significant player in the data centre REIT sector, being the second-largest globally. Recent reviews highlight the company's strong bookings and potential benefits from the AI boom, supported by large tech tenants willing to invest heavily in data centres for cloud expansion. Despite some concerns about the stock being overheated, experts note the record industry leasing seen in the last quarter, which was four times higher than a year ago. With internal growth expected to remain robust, a modest premium to net asset value, and a steady yield of 3.4%, the sentiment appears generally positive regarding the company's long-term prospects. Analysts have set price targets ranging from $146.87 to $162.50, indicating an optimistic outlook amidst caution regarding current pricing levels.
They reported great bookings. To play AI, invest in data centres.
Second-largest data centre REIT globally. Record industry leasing last quarter, 4 times as much as a year ago. Tenants are big tech, with lots of capital to put into data centres to support cloud rollout. Coming AI boom, will benefit. Pricing power. Over 5% internal growth annually, could be higher. Modest premium to NAV, and the NAV will increase over the years. Yield is 3.4%.
(Analysts’ price target is $147.70)One of two pure plays on data centres. Beat on top and bottom raised guidance. 12-month price target of $162.50. Yield is 3.4%.
Owns most of its data centres, whereas EQIX has arrangements with customers. As well, EQIX stock went through the "death cross", which is usually not good.
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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Buy in tranches with each increase of 0.25% in interest rates. Likes DLR.
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.
(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.
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
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.
Digital Realty Trust was recommended as a Top Pick by on . Read the latest stock experts ratings for Digital Realty Trust.
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.
2 stock analysts on Stockchase covered Digital Realty Trust In the last year. It is a trending stock that is worth watching.
On 2025-02-14, Digital Realty Trust (DLR-N) stock closed at a price of $164.28.
The stock got overheated during the data centre rally. Wait for it to come back down. This could go much lower after going parabolic.