BMO Capital analysts upgraded Digital Realty Trust (NYSE:DLR) stock to Outperform from Market Perform, raising their price target to $170 from $144. The analysts cited several factors for the upgrade, including an improved balance sheet, strong demand, rising prices, and increasing mark-to-market values.
The analysts anticipate that Digital Realty Trust will overcome its recent stagnant FFO growth, projecting accelerating Core FFO growth of 1.5% in 2024, 6% in 2025, and 8% in 2026. The analysts also highlighted the company’s strong positioning within the AI-driven thematic, especially among REITs, and see potential for further multiple expansion.