Key Metro Pricing & Bookings Instill Optimism for Digital Realty (DLR)

Digital Realty Trust (NYSE:DLR) is one of the most favored real estate investment trusts according to Hedge Funds.

On December 15, Phani Kanumuri at HSBC upgraded his rating on Digital Realty Trust (NYSE:DLR) from Hold to Buy. He also raised his estimated price target from $187 to $193, resulting in an upside of 18%.

Kanumuri is projecting “strong and sustainable” growth in Digital Realty Trust’s (NYSE:DLR) adjusted funds from operations (AFFO), leading to promising near- to mid-term prospects. He shared a growth range of around 9% to 10% for the coming 3 years, backed by strong pricing and bookings within key metro locations. The analyst also noted that the REIT currently offers attractive entry points following a bearish trend in its share price.

On January 12, Mizuho Securities analyst Vikram Malhotra also reiterated his bullish views on Digital Realty Trust (NYSE:DLR). He assigned a Buy rating but lowered his target price forecast from $191 to $180, resulting in a revised upside potential of 10%. Malhotra’s adjustment is part of Mizuho’s 2026 outlook for REITs, where the firm has remained Equal Weight amid macroeconomic uncertainties.

Digital Realty Trust (NYSE:DLR) is a specialty real estate investment trust that owns and operates data centers. It offers the required physical infrastructure to network carriers, cloud hosting companies, and enterprises for their AI, cloud, and digital transformation needs. The company delivers dark fiber, colocation, and interconnection services to clients within a range of sectors.

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Disclosure: None. This article is originally published at Insider Monkey.