[DEVELOPING] BofA cuts Digital Realty to Neutral, target to $170 from $210, on AI-unsuited development pipeline
Bank of America downgraded Digital Realty from Buy to Neutral and cut its price target to $170 from $210, describing a high-quality operator whose growth is constrained by the scale and location of a development pipeline that is a poor fit for AI-driven demand, and concluding that valuation is no longer compelling. The accompanying analysis observes that headline AI capacity has largely gone to private operators and newer platforms as customers prioritise speed to market in non-traditional locations. Desk context: Digital Realty is the only sell candidate surviving validation today at conviction 0.56, sitting opposite long signals in the power-equipment layer.