Goldman Sachs analysts resumed coverage on technology-related real estate developer Digital Realty Trust, Inc. (DLR) on Thursday with a bullish rating, as they believe data centers’ growth should stabilize.
The analysts rate DLR as “Buy” with a price target of $78. This target suggests an 18% upside to Wednesday’s closing price of $65.98.
“After two years as a fallen growth story, we think data centers should stabilize,” said Goldman Sachs analyst Matthew Rand. “From 2005-2010, data center FFO growth was 22% ahead of the REIT sector annually, but then growth fell and the stocks followed. Now there is opportunity.”
Digital Realty Trust shares were inactive during pre-market trading on Thursday. The stock is down -2.81% year-to-date.
The Bottom Line
Shares of Digital Realty Trust (DLR) have a dividend yield of 4.73% based on last night’s closing price of $65.98 and the company’s annualized dividend payout of $3.12 per share.
Digital Realty Trust, Inc. (DLR) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.