Digital Reality is aggressively pursuing many opportunities, across both operators and individual assets, while the level of capital deployed into development is also growing, according to the analyst note.
"We expect the company to aggressively pursue accretive transactions in the coming months as it aims to stake claim to the title of most dominant global data center operator," Cantor Fitzgerald analysts said.
Digital Realty Trust is a real estate investment trust (REIT) that owns and develops technology-related real estate, and provide services include implementation services, remote hands services, data center infrastructure management (DCIM), client services and digital realty partner network.
Separately, TheStreet Ratings team rates DIGITAL REALTY TRUST INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIGITAL REALTY TRUST INC (DLR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 161.8% when compared to the same quarter one year prior, rising from $45.91 million to $120.18 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.5%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 37.08% is the gross profit margin for DIGITAL REALTY TRUST INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 29.38% is above that of the industry average.
- Net operating cash flow has increased to $138.92 million or 19.33% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.80%.
- You can view the full analysis from the report here: DLR Ratings Report