- DigitalBridge ( NYSE: DBRG ) stock spiked as much as 8.1% in Wednesday premarket trading after Deutsche Bank analyst Matthew Niknam started coverage of the stock with a Buy rating.
- The analyst mostly pointed to the company's model transition to a digital infrastructure-focused alternative manager from a traditional commercial infrastructure REIT.
- That will enable its business model to become more "high-growth and increasingly asset-light," he wrote in a note.
- "Given the highly durable secular and thematic tailwinds tied to 5G, cloud, edge computing, and more data-intensive AI/ML workloads (to name a few...), we see digital infrastructure as a defensive asset class with significant runway for incremental fund flows."
- DBRG is currently trading at 10 times 2024 estimated price-to-distributable earnings versus peers averaging 14x, the note said. Bear in mind that DBRG is a low-volume, high-beta stock, so the price can be quite volatile at times.
- In December 2022, activist Legion Partners discussed its DBRG stake .
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DigitalBridge attracts new bull rating at Deutsche Bank on model transition