10:15 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target by $3 to $144 on a forward P/FFO of 21.5x our 2024 FFO view, a premium to DLR's 10-year average (17.8x) due to the insatiable demand for data centers spurred by AI use cases. Demand is well outpacing new supply growth globally, with supply and demand unlikely to come back into balance over the next few years, in our view. We raise our 2024 FFO estimate by $0.01 to $6.71 and 2025's by $0.07 to $7.19. DLR posted Q1 2024 FFO of $1.67 vs. $1.66, a $0.05 consensus beat. Revenues fell slightly, -1% Y/Y, due to asset dispositions over the last 12 months as DLR continued to lower its leverage profile (6.1x vs. 7.1x Y/Y) given the higher rate environment. However, same-capital cash NOI rose 4.7% Y/Y while churn remained low at just 1.7% given favorable supply/demand dynamics. DLR achieved record bookings of $252 in Q1 while pricing power led to cash rental rate growth of 11.8%. Management plans to continue focusing on joint venture opportunities and the disposition of non-core assets through 2024.