Analyst Praises REIT's AI Advancements

DLR is pacing for weekly and monthly wins

Jake Scott

Deputy Editor

Jun 28, 2024 at 9:17 AM

Digital Realty Trust Inc (NYSE:DLR) is up nearly 2% before the opening bell, after JPMorgan Securities upgraded the real estate investment trust (REIT) to "overweight" from "neutral." The analyst in coverage also lifted its price target from $150 to $175 -- a 17.7% premium to last night's close -- noting artificial intelligence (AI) advancement and cloud growth could benefit the REIT stock.

Coming into today, Digital Realty Trust stock boasted a 35.7% year-over-year lead and a 10.5% gain. Despite that, nine of 21 covering brokerages still recommend a "hold" or worse, which leaves room for more analysts to change their tune.

In late-February, the shares hit more than two-year highs above the $154 level, and a pullback from those highs was saved by their 140-day moving average. Now, the security is on track to lock in its fourth weekly win in five, as well as its second consecutive month of gains.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!