Digital Realty Trust (DLR) Supplier Cuts Guidance as Management Offers 6M Shares in Secondary, Morgan Stanley Reiterates Equalweight

Morgan Stanley analyst Simon Flannery reiterated an Equalweight rating and an under market $148.00 price target on Digital Realty Trust (NYSE: DLR) after Vertiv Holdings Co. (NYSE: VRT) cut guidance due to supply chain issues. The company is one of the leading suppliers of power, cooling and IT infrastructure solutions to the Data Center industry. VRT noted that that "supply chain challenges described in our prior communications are trending worse than expected, with critical part shortages driving the need for additional spot buys. In some cases, the company cannot procure critical parts at any price, creating production and delivery challenges pressuring the top-line. Vertiv is taking actions to address these challenges, which are expected to continue through the first half of 2022."

The analyst stated "Up to now, the Data Center operators have generally sounded comfortable with supply chain conditions, noting strong inventory positions as a result of advance ordering and preferred supplier relationships. We have, however, seen supply chain issues bubble up more frequently recently, with AT&T noting impacts to their fiber to the home buildout plans. Delays in sourcing Data Center components could push back leasing commencements and revenue recognition and could impact operators in different ways."

For an analyst ratings summary and ratings history on Digital Realty Trust click here. For more ratings news on Digital Realty Trust click here.

Shares of Digital Realty Trust closed at $166.14 yesterday.

You May Also Be Interested In

• Morgan Stanley Upgrades Merck (MRK) to Overweight
• Baidu (BIDU) PT Lowered to $150 at Benchmark on Near-Term Margin Concerns
• CrowdStrike (CRWD) PT Adjusted $250 at Cantor Fitzgerald Post Stock Split