BUZZ-BofA downgrades Digital Realty to 'neutral,' cuts PT

Reuters01-08
BUZZ-BofA downgrades Digital Realty to 'neutral,' cuts PT

** Shares of data center operator Digital Realty DLR.N fall 1.3% to $152.79 in early market trading

** BofA Global Research downgrades DLR to 'neutral' from 'buy'; lowers price objective to $170 from $210, implying 9.8% upside to stock's last close

** "DLR hasn't participated in AI-related demand at the level we anticipated as the largest development deals of 2025 went to emerging data center markets where DLR doesn't compete," brokerage says

** BofA expects DLR to stay focused on primary established markets in 2026, which could disappoint investors who have grown accustomed to large quarterly leasing numbers

** 21 of 30 brokerages covering stock recommend rating of "buy" or higher, 8 "hold" and 1 "sell"; stock has median PT of $195 - LSEG-compiled data

** DLR had lost about 12.8% last year

(Reporting by Arnav Mishra in Bengaluru)

((Arnav.Mishra@thomsonreuters.com;))

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