BofA downgrades Digital Realty to 'neutral,' cuts PT

Shares of data center operator Digital Realty DLR.N fall 1.3% to $152.79 in early market trading

BofA Global Research downgrades DLR to 'neutral' from 'buy'; lowers price objective to $170 from $210, implying 9.8% upside to stock's last close

"DLR hasn't participated in AI-related demand at the level we anticipated as the largest development deals of 2025 went to emerging data center markets where DLR doesn't compete," brokerage says

BofA expects DLR to stay focused on primary established markets in 2026, which could disappoint investors who have grown accustomed to large quarterly leasing numbers

21 of 30 brokerages covering stock recommend rating of "buy" or higher, 8 "hold" and 1 "sell"; stock has median PT of $195 - LSEG-compiled data

DLR had lost about 12.8% last year