Analyst Note| Matthew Dolgin, CFA |
Digital Realty beat FactSet consensus revenue and EBITDA estimates and delivered another period of strong bookings, well distributed across all geographies, in the first quarter. However, we expect this type of execution from the company, as we believe its Interxion acquisition and global expansion make it a premier data center provider, and we are not materially changing our forecast. While Digital Realty raised its full-year revenue and EBITDA outlook, much of it can be explained by more-favorable foreign-exchange rates than it previously anticipated and strong power reimbursements realized during the first quarter in the wake of the storm and power outages in Texas. We are raising our fair value estimate to $127 per share from $125 and like the company, but we think it is expensive at current levels.