Evercore pulls Digital Realty from Conviction Buy list

|About: Digital Realty Trust, Inc. (DLR)|By:, SA News Editor

Analyst Jonathan Schildkraut thinks the Friday selloff that followed Digital Realty's (DLR -1.7%) Q2 results points to "a high level of skepticism in (and low level of trust from) the public markets."

Schildkraut likes the data center owner's valuation and strong new lease/renewal activity, but also notes a capitalization policy change stands to hurt 2013 FFO by $0.05/share, and thinks shares could be range-bound over the near-term.

DLR is closing near its 52-week low of $56.02. Fellow colocation services provider Equinix sold off on Thursday in response to its Q2 revenue miss and soft guidance.