JPMorgan Securities upgraded the Digital Realty Trust stock to "overweight"
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.