BMO Capital analyst Ari Klein upgraded Digital Realty Trust to Outperform from Market Perform with a price target of $170, up from $144. With an improved balance sheet, strong demand, rising prices, and building mark-to-market, Digital Realty should move past its stagnant funds from operations growth in recent years, with accelerating core FFO growth through 2026, the analyst tells investors in a research note. The firm believes the company remains well positioned as a play on the artificial intelligence thematic, particularly within real estate investment trusts, with room for further multiple expansion. BMO sees an “unprecedented demand backdrop” for data centers.
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