4 big analyst cuts: Frontline, Digital Realty cut to Hold at Deutsche Bank

Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Frontline, Digital Realty Trust, FactSet Research Systems, and Crestwood Equity Partners.

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Frontline downgraded at Deutsche Bank following Q2

Deutsche Bank downgraded Frontline (NYSE:FRO) to Hold from Buy with a price target of $17.00, as reported in real time on InvestingPro.

Yesterday, the company reported its Q2 results, with EPS of $0.94 and revenue of $512.8 million coming in significantly above the consensus estimates.

According to the bank, they cut the rating on Frontline as shares are now trading at a slight premium to their price target of $17.

We assume that FRO shares will trade at a slight premium to NAV based on historical precedent and due to its generous dividend payout policy of returning 80% of adjusted income as a quarterly dividend.

Digital Realty Trust cut to Hold

Digital Realty Trust (NYSE:DLR) shares fell more than 1% premarket today after Deutsche Bank downgraded the company to Hold from Buy with a price target of $131.00 (from $112.00).

The rating change was due purely to a lack of upside potential to its new price target. The bank clarified that its outlook on Data Center Real Estate Investment Trust (REIT) fundamentals remains optimistic. This is due to a strong demand environment, bolstered by the growth of cloud and AI/ML.

This demand surge has now matched with tightening supply and power constraints in key markets, leading to substantial improvements in industry pricing. These positive shifts in pricing have been lacking over much of the last decade, and the bank anticipates them to continue in the foreseeable future.

Two more downgrades

RBC Capital downgraded FactSet Research Systems (NYSE:FDS) to Sector Perform from Outperform and cut its price target to $464.00 from $500.00.

Raymond James downgraded Crestwood Equity Partners (NYSE:CEQP) to Market Perform from Outperform with a price target of $30.00.

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