DigitalBridge Group (DBRG – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Elias from TD Cowen maintained a Buy rating on the stock and has a $20.00 price target.
Michael Elias has given his Buy rating due to a combination of factors that suggest a promising future for DigitalBridge Group, despite current challenges. The company’s fourth-quarter results of 2023 were mixed, and the initial guidance for 2024 indicated potential downsides. Nevertheless, Elias believes that the market’s reaction to this news creates an opportunity for investors. He maintains that DigitalBridge is poised to capitalize on the inflow of capital into the data center industry, thanks to its technical expertise and the growing demand for data infrastructure driven by Generative AI advancements.
The analyst underscores that while the company removed its 2025 guidance, the yearly fundraising efforts are expected to remain robust, with $7 billion projected for 2024 compared to $8 billion in 2023. Elias acknowledges the necessity for the firm to return capital to limited partners as a strategic move to facilitate new capital raising. This dynamic could change in the future, but for now, it is a critical element of the company’s fundraising strategy. Elias’s confidence in DigitalBridge’s foundational thesis remains unshaken, and he believes that any resulting stock price weakness should be viewed as an advantageous entry point for investors, thus maintaining an Outperform rating for the stock.
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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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