.July 12, 2024 09:55 AM

Stifel analysts raised their price target for Digital Realty Trust (NYSE:DLR) to $175 from $165, maintaining a Buy rating. They are confident in the company’s ability to meet its 2024 guidance, including cash renewals of 5%-7% and same capital NOI growth of 2.5%-3.5%.

The analysts highlighted the favorable macroeconomic environment and strong industry fundamentals supporting increased pricing leverage for Digital Realty. They expect the AI boom to drive more deals in 2024, with additional capacity in constrained markets boosting market share.

Stifel emphasized Digital Realty’s robust operating environment, sustained demand, and positive leasing trends. The company’s portfolio is well-positioned for upgrades and can accommodate higher density AI deployments with new builds featuring liquid cooling on a larger scale.