Jefferies analyst Jonathan Petersen downgrades his rating for Digital Realty Trust, Inc. (NYSE:DLR) from Buy to Hold with a price target of $115.00, noting the company’s valuation.

Petersen explains, “DLR is up 40.1% YTD, outperforming Data Center peers and the RMZ by 670 and 2,670 bps, respectively. The stock has regained its premium AFFO multiple, which is well deserved given the progress management has made over the past few years to reduce development risk and diversify into colocation.”

The analyst also notes that DLR’s large size makes it tough for the company to grow at the same pace as its smaller peer companies. 

According to TipRanks, Petersen is ranked #496 of 4,064 analysts.