UBS initiates Australian data centre operator DigiCo with 'buy'

Goodman

28/01/2025 05:01

** UBS initiates Street coverage on newly-listed data centre
landlord and operator DigiCo Infra REIT  DGT.AX  with a "buy"
rating and a price target of A$5.60
    ** Says it believes DGT is well-positioned to leverage the
increasing shift towards cloud computing and uptake in AI
    ** Brokerage sees "multiple pathways for both earnings and
valuation multiples upside" as well as re-rating the stock
    ** DGT listed on the ASX in mid-December; its IPO raised A$2
bln
    ** Shares of DGT are down 10.9% at A$4.25, in line with
larger rivals Goodman Group  GMG.AX  and NEXTDC  NXT.AX 
    ** AI-exposed stocks in Australia drop after Chinese startup
DeepSeek's low-cost AI model sent tech stocks on Wall Street
tumbling

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com;))