Digital Realty jumps on 2025 forecast boost, lifts data center stocks

Digital Realty's DLR.N shares up 5.5% to $162.28 early Fri after data center landlord raised annual funds from operations forecast

DLR rising for fourth straight day, hits two-mth high

Texas-based real estate investment trust late Thurs said now sees 2025 core FFO/sh of $7.05-$7.15 vs prior outlook of $7.00-$7.10, betting on continued strong demand

Adj FFO, a key measurement for REITs, came in at $1.77 in Q1, up from $1.67 a year ago

Stifel maintained 'buy' rating and bumped PT by $5 to $190, saying record backlog drives visibility for 2025 and momentum for 2026

Jefferies, which has 'buy' on the stock, lifted its PT by $3 to $193

DLR had another strong leasing qtr, and eased concerns about hyperscalers slowing their investments, Jefferies said in note

Shares of peers rise: Equinix EQIX.O 3%, Iron Mountain IRM.N 2%, Core Scientific CORZ.O nearly 5%

Vertiv Holdings VRT.N, designer and builder of data center infrastructure, up ~4%

19 of 25 brokerages rate DLR "strong buy" or "buy", 5 rate "hold". while 1 recommends "sell" and their median PT is $187, LSEG data currently shows

With move on Fri, shares down ~8% YTD vs 0.6% decline in S&P 500 real estate sector .SPLRCR and ~7% drop in S&P 500 .SPX