Digital Realty jumps on 2025 forecast boost, lifts data center stocks

Iron Mountain

25/04/2025 15:10

Updates, adds stock activity of peers

** Digital Realty's DLR.N shares up 5.5% to $162.28 early Fri after data center landlord raised annual funds from operations forecast

    ** DLR rising for fourth straight day, hits two-mth high

    ** Texas-based real estate investment trust late Thurs said now sees 2025 core FFO/sh of $7.05-$7.15 vs prior outlook of $7.00-$7.10, betting on continued strong demand

    ** Adj FFO, a key measurement for REITs, came in at $1.77 in Q1, up from $1.67 a year ago

    ** Stifel maintained 'buy' rating and bumped PT by $5 to $190, saying record backlog drives visibility for 2025 and momentum for 2026

    ** Jefferies, which has 'buy' on the stock, lifted its PT by $3 to $193

    ** DLR
    had another strong leasing qtr, and eased concerns about hyperscalers slowing their investments, Jefferies said in note

    ** Shares of peers rise: Equinix EQIX.O 3%, Iron Mountain IRM.N 2%,
    Core Scientific CORZ.O nearly 5%

    ** Vertiv Holdings VRT.N, designer and builder of data center infrastructure, up ~4%

    ** 19 of 25 brokerages rate DLR "strong buy" or "buy", 5 rate "hold". while 1 recommends "sell" and their median PT is $187, LSEG data currently shows

    ** With move on Fri, shares down ~8% YTD vs 0.6% decline in
    S&P 500 real estate sector .SPLRCR and ~7% drop in S&P 500 .SPX

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))