Macquarie joins the bears on Digital Realty

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

"On the surface, Digital Realty Trust (DLR -3%) looked attractive to us when we assumed coverage on 12/13/2013," says analyst Kevin Smithen, cutting the stock to Underperform with $43 price target (from $54). "After crunching the numbers and digging into the competitive landscape with our cloud research team, we expect the recent rally in DLR shares to reverse."

Though not in the same class with some who question the sustainability of DLR's payout in the short-term, Smithen does see a deteriorating business model "due to cyclical, competitive and structural reasons after several years of strong growth and high returns."

His team cuts expected 2014 FFO per share to $4.86 from $4.93.