Digital Realty price target lowered to $81 from $88 at Barclays

Barclays analyst Brendan Lynch lowered the firm’s price target on Digital Realty Trust to $81 from $88 and keeps an Underweight rating on the shares. The analyst says several of the risks he identified in his September 23 downgrade are materializing on a faster timeline than envisioned. The past week has "unveiled cracks in the consensus view that data centers are tapping into ever increasing demand and improving pricing," Lynch tells investors in a research note. Data processing is continually getting more efficient, and the need for incremental data center capacity will be lower than the data growth trajectory, says the analyst, who now projects a 20% Digital Realty share price contraction over the next year.