Wells Fargo analyst Eric Luebchow maintained a Buy rating on DigitalBridge Group (DBRG – Research Report) yesterday and set a price target of $20.00.
Eric Luebchow has given his Buy rating due to a combination of factors, including DigitalBridge Group’s strong fund-raising guidance amidst a challenging environment and the potential for growth in its fee-related earnings. Despite the company’s earnings forecast falling short of initial expectations, Luebchow sees the planned transition to a more capital-efficient investment management platform and a robust fund-raising goal of $7 billion as positive signs. He also notes the company’s strategic allocation of capital, particularly its significant investment in data centers, which are critical to the growth and future success of the company’s portfolio.
The optimism in Luebchow’s analysis is further supported by the anticipated boost in fee revenues and fee-related earnings, which include one-time catch-up fees that enhance growth rates. He believes that these growth rates may accelerate going into 2025, especially if limited partner fundraising conditions improve. Luebchow’s confidence in DigitalBridge Group is also bolstered by the firm’s recent achievements in data center leasing and its potential to attract new capital in the coming years. Despite revising down the fee-related earnings outlook, he maintains a stable price target, considering the re-rating of comparable alternative asset managers and the possibility of an Investor Day event serving as a catalyst for broadening the investor base.
Luebchow covers the Real Estate sector, focusing on stocks such as Crown Castle, Equinix, and Public Storage. According to TipRanks, Luebchow has an average return of -1.2% and a 45.99% success rate on recommended stocks.
In another report released yesterday, KBW also maintained a Buy rating on the stock with a $20.00 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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