Citing great growth possibilities driven by increasing demand for artificial intelligence, hyperscale, and enterprise services, Deutsche Bank upped its rating on Digital Realty Trust (NYSE:DLR) to Buy from Hold.
Analyst Matt Niknam pointed out that high demand combined with continuous restrictions in space and power gives the perfect conditions for pricing and maximizing profitability on recently constructed projects.Niknam also emphasized Digital Realty's improved balance sheet, which shows its capacity to leverage debt, equity, and non-core asset sales among other funding sources.
This adaptability helps balance the difficulties caused by rising rates of interest.The update captures growing hope about how artificial intelligence and hyperscale can shape data center demand.Following Deutsche Bank's optimistic view, Digital Realty shares rose 1.7% at 10:46:21 AM ET to hit $176.76.
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