Michael Elias, an analyst from TD Cowen, maintained the Buy rating on DigitalBridge Group (DBRG – Research Report). The associated price target is $20.00.
Michael Elias has assigned a Buy rating to DigitalBridge Group based on a comprehensive assessment of the company’s strong positioning within the rapidly growing digital infrastructure sector. DigitalBridge’s targeted investment approach, which concentrates on areas such as data centers, towers, small cells, and fiber, has allowed it to capitalize on the surging demand for data center capabilities, driven in significant part by advancements in artificial intelligence (AI). This demand has been reflected in the robust performance and expansion of DigitalBridge’s portfolio companies, including Vantage Data Centers, DataBank, Scala Data Centers, and the recent acquisition of Switch, all of which have experienced heightened demand in 2023.
Elias further supports his Buy rating by highlighting the company’s ability to leverage increased capital expenditures (capex) in the data center space to its advantage. Unlike certain hyperscale data center operators for whom increased capex might be a negative signal, DigitalBridge’s portfolio companies are poised to benefit from this trend. The increased capex is seen as a positive development, providing opportunities for the company’s limited partners (LPs) to invest in physical assets that promise compelling development yields of over 10%. These yields are particularly attractive as they are often backed by investment-grade hyperscalers. Coupled with DigitalBridge’s strong co-investment program, Elias believes that these factors position the company to exceed its medium-term fundraising targets and capitalize on the influx of capital into the data center sector during the AI investment cycle, thereby presenting potential upside for DigitalBridge’s stock.
According to TipRanks, Elias is ranked #7198 out of 8620 analysts.
In another report released on November 21, KBW also maintained a Buy rating on the stock with a $19.50 price target.
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DigitalBridge Group (DBRG) Company Description:
DigitalBridge is a leading digital infrastructure firm. It invests and operates businesses across the digital ecosystem, which includes data centers, cell towers, fiber, edge infrastructure, and small cells.
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