HSBC upgraded Digital Realty Trust (DLR) to Buy from Hold. The firm raised its price target to $240 from $210. Analysts attribute the upgrade to favorable demand-supply dynamics and strong management execution.
Digital Realty reported revenue growth of 18.85% over the last 12 months. The company expects continued growth through 2026 and beyond. Second-quarter results featured record Core Funds From Operations (FFO) per share.
The company currently maintains a $1.9 billion backlog. Digital Realty raised its 2026 Core FFO per share guidance following the strong quarterly performance. Cantor Fitzgerald and RBC Capital also increased their price targets after performance exceeded consensus expectations.