TD Cowen Raises Digital Realty Trust (DLR) Target on Strong Q4 Performance
Digital Realty Trust, Inc. (NYSE:DLR) is included among the 14 Best Real Estate Stocks to Buy According to Hedge Funds.
On February 6, TD Cowen raised its price recommendation on Digital Realty Trust, Inc. (NYSE:DLR) to $185 from $179. The analyst kept a Hold rating on the shares. The firm pointed to stronger-than-expected fourth-quarter results and said there could be further upside ahead. In particular, it noted that higher renewal spreads in 2026 could help drive better Core FFO per share growth than the company’s current outlook suggests.
CEO Andy Power described 2025 as a turning point for both Digital Realty and the data center industry overall. He said the company closed the year with record results and beat its own guidance on revenue, EBITDA, and core FFO per share. Leasing activity was especially strong. Power noted that Digital Realty signed more than $1 billion in new leases for the second year in a row, with total bookings reaching $1.2 billion in 2025. That figure was nearly 70% higher than the company’s average annual bookings over the past five years, showing how quickly demand has accelerated.
He also highlighted strong momentum in interconnection and colocation, which have become key growth areas for the company. Power said bookings for its interconnection offerings reached nearly $340 million during the year, marking a new record and rising more than 35% compared with 2024. This growth reflects increasing demand from customers looking for reliable, scalable infrastructure to support cloud computing, AI, and data-heavy workloads.
Digital Realty Trust, Inc. (NYSE:DLR) is a data center REIT that owns, develops, and operates facilities that support digital infrastructure. Its data centers help businesses, cloud providers, and technology companies store data, run applications, and maintain global connectivity.
While we acknowledge the potential of DLR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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