Truist Securities Raises DigitalBridge Gr (DBRG) Price Target to $16

Truist Securities has raised the price target for DigitalBridge Gr (DBRG) from $15.00 to $16.00, a 6.67% increase, maintaining its "Buy" rating. Analysts are positive about the company's prospects as a developer of alternative asset manager for digital infrastructure. The average target price for DBRG is $16.75 with an upside of 49.89% from the current price. The average brokerage recommendation is 2.0, indicating "Outperform" status.

Truist Securities has recently raised the price target for DigitalBridge Group (DBRG) from $15.00 to $16.00, a 6.67% increase, while maintaining its "Buy" rating. This move reflects a positive outlook on the company's strategic pivot and recent financial performance. The new price target suggests that analysts expect the stock to appreciate significantly over the coming months.

DigitalBridge Group, a prominent player in the digital infrastructure investment landscape, has been transforming its business model to focus exclusively on digital assets. The company's fourth quarter results for 2024 exceeded both analyst and market expectations, demonstrating its ability to outperform in challenging conditions. Truist Securities' analysts believe that the company's recent performance and strategic focus indicate potential for future growth and improved market valuation [1].

One of the key factors driving this positive outlook is DigitalBridge Group's ambitious capital raising targets. The company aims to raise between $5.0 billion and $6.0 billion of fee-generating capital annually. This capital raising effort is designed to fuel growth while maintaining a balanced portfolio structure. The company has made significant progress in expanding its assets under management (AUM), with its total AUM standing at $96.0 billion, and fee-earning AUM (FEEUM) representing 37.0% of this total [1].

Despite its strategic improvements and strong recent results, DigitalBridge Group's stock has been one of the worst-performing in its sector over the past five years. However, Truist Securities believes that as the company continues to simplify its business model and achieve its long-term objectives, its stock performance could improve significantly. The company's valuation currently appears attractive compared to its peers, trading at approximately 17 times its estimated 2026 Fee-Related Earnings (FRE), which is substantially below the peer average of about 27 times [1].

Looking ahead, asset monetization is expected to play a key role in DigitalBridge Group's performance in 2025. The company anticipates potential sales of assets that could result in significant gains and reduce volatility in carried interest metrics. These monetization events could serve as catalysts for stock price appreciation and demonstrate the value creation within DigitalBridge's portfolio [1].

In conclusion, Truist Securities' decision to raise the price target for DigitalBridge Group to $16 reflects a positive outlook on the company's strategic pivot and recent financial performance. The company's focus on digital infrastructure, ambitious capital raising targets, and strong fourth quarter results suggest potential for future growth and improved market valuation.

References:
[1] https://www.ainvest.com/news/digitalbridge-group-truist-securities-maintains-buy-raises-pt-16-15-2508/