Data center REIT Digital Realty eyes best day in 17 years on upbeat outlook

Iron Mountain

24/07/2026 15:42

** Digital Realty's DLR.N shares surge 14.3% to three-month high of $204.98 on Fri after it raised full-year forecast on robust data center demand from AI customers
** Stock on track for steepest one-day pct gain since Mar 2009
** Texas-based REIT late Thurs said now sees fiscal 2026 adj FFO of $8.15-$8.20/sh, up from $8-$8.10/sh, and rev of $6.85-$6.95 bln, from prior view of $6.65-$6.75 bln
** Co posted Q2 rev of $1.92 bln and core FFO of $2.65/sh, both beating Wall Street estimates, per LSEG data
** TD Cowen upgrades DLR to 'buy' from 'hold', boosts PT to $222 from $192
** On the heels of strong YTD leasing, DLR management sees its record backlog supporting "multiple years of double-digit" core FFO/sh growth, a notable change vs prior messaging, TD Cowen writes in note
** JP Morgan increases PT to $235 from $230
** Shares of peers Equinix EQIX.O and Iron Mountain IRM.N up 6% and 5%, respectively, on the session
** With the advance, DLR shares up ~32% YTD and well outperforming ~1.6% rise for S&P 500 Real Estate index .SPLRCR
** 27 of 34 analysts rate the stock "strong buy" or "buy", 7 "hold"; median PT $221

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))