Deutsche Bank Hikes Digital Realty Trust Stock Price Target on Massive Data Center Lease Demand

Key Stats for Digital Realty Trust Stock

• 1-month price change for Digital Realty Trust stock: -8%
• $DLR Stock Price as of May. 18: $189
• 52-Week High: $208
• $DLR Stock Price Target: $219

Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>

What Happened?

Deutsche Bank raised its price target on Digital Realty Trust (DLR) stock to $220, while reiterating its Buy rating. That new target implies roughly 16% upside from current levels.

Analyst Benjamin Soff pointed to surging demand for large data center leases and a growing shortage of new supply as the key reasons behind the upgrade.

The timing makes sense.

• Digital Realty just reported its second-highest leasing quarter ever, signing over $700 million in new leases.
• The highlight was the largest single lease in company history — a 200-megawatt AI inference deal with a top-rated hyperscaler in Charlotte.
• The company also set a new record in its smaller 0-1 megawatt category, which covers enterprise customers and interconnection services.

“This dynamic is boosting pricing power for scaled incumbents, including DLR,” Soff wrote, adding that Digital Realty renewed its larger leases at an average spread of 11.8% over the past four quarters.

See analysts’ growth forecasts and price targets for Digital Realty Trust stock (It’s free) >>>

What the Market Is Telling Us About Digital Realty Trust Stock

The core thesis for Digital Realty Trust stock is straightforward.

• AI workloads are moving from small experiments to full-scale production, and that takes a lot of data center capacity.
• At the same time, building new supply is getting harder.
• Power availability, labor shortages, and community pushback are all slowing competitors down.

That squeeze directly benefits Digital Realty Trust stock.

• The company already has 1.2 gigawatts under construction, 61% of which is already pre-leased.
• Its total backlog hit a record $1.8 billion, giving strong revenue visibility into 2027 and 2028.
• Management also raised its full-year Core FFO guidance to $8 to $8.10 per share, representing 9% growth.

Deutsche Bank noted that Digital Realty’s scale, track record, and clean balance sheet put it in a unique position.

Most competitors simply can’t match that combination right now.

Estimate a company’s fair value instantly (Free with TIKR) >>>

How Much Upside Does Digital Realty Trust Stock Have From Here?

With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.

All it takes is three simple inputs:

1. Revenue Growth
2. Operating Margins
3. Exit P/E Multiple

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

See a stock’s true value in under 60 seconds (Free with TIKR) >>>

Looking for New Opportunities?

• See what stocks billionaire investors are buying so you can follow the smart money.
• Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
• The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!