Analyst Note| Matthew Dolgin, CFA |
Digital Realty beat FactSet consensus revenue and EBITDA estimates and delivered another period of strong bookings in the fourth quarter. It appears the Interxion acquisition, which closed in March 2020, is already transforming the business, as Europe, the Middle East, and Africa accounted for over half of total bookings and the firm is rapidly growing cross connects and smaller colocation bookings. Our only disappointment is that the firm’s EBITDA margin has remained stubbornly low following the acquisition, and the firm didn’t forecast any improvement in 2021. We are maintaining our $125 fair value estimate.