Jefferies Downgrades Digital Realty Trust (DLR) to Hold, Sees Slight Cracks and Fair Valuation
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Price: $197.91 -1.12%
Rating Summary:
30 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
30 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Jefferies downgraded Digital Realty Trust (NYSE: DLR) from Buy to Hold with a price target of $73, down form $74.
The firm comments, "Data center fundamentals remain solid with key drivers (cloud computing, outsourcing, bandwidth/network access) still going strong. However, certain markets show signs of slowing demand and rising supply. As such, rental rate growth is stagnating or even declining in some markets. Given these slight cracks in industry fundamentals, and solid stock performance (+29.6% past year vs. RMZ +10.8%) we are downgrading DLR to Hold from Buy."
Jefferies cut FY12 EPS from $4.50 to $4.45 and FY13 from $5.07 to $4.90.
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 $72.33 yesterday.
The firm comments, "Data center fundamentals remain solid with key drivers (cloud computing, outsourcing, bandwidth/network access) still going strong. However, certain markets show signs of slowing demand and rising supply. As such, rental rate growth is stagnating or even declining in some markets. Given these slight cracks in industry fundamentals, and solid stock performance (+29.6% past year vs. RMZ +10.8%) we are downgrading DLR to Hold from Buy."
Jefferies cut FY12 EPS from $4.50 to $4.45 and FY13 from $5.07 to $4.90.
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 $72.33 yesterday.
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