2024-06-05 13:13:24 ET
Summary
- Digital Realty's recent earnings release showed record leasing activity and favorable pricing trends.
- Despite the strong quarter, the shares are still priced to perfection, leaving limited upside potential and a poor margin of safety.
- The company's premium valuation and the need for flawless execution of growth initiatives make it difficult to justify a Buy rating.
Summary
In our initial report on Digital Realty ( DLR ), we rated the shares a Hold on valuation. We believed they were "too expensive to consider a Buy", though we acknowledged that the near-term fundamentals of the DC market were too strong to allow significant underperformance....
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Digital Realty: Still Too Expensive To Buy