JPMorgan thinks DigitalBridge is poised for big gains. The bank upgraded the stock to overweight from neutral and raised its price target to $25 from $19. JPMorgan’s new forecast implies more than 51% upside from Wednesday’s close. DigitalBridge has climbed roughly 51% from the start of the year. The company invests in businesses including cellphone towers, data centers as well as fiber networks. DBRG YTD mountain DigitalBridge stock has climbed more than 51% from the start of the year. Analyst Richard Choe said the company is largely done with a “transformation of the business” and is now focused on simplifying operations. He added that investors can gain exposure to a multitude of digital infrastructures without being hyper-focused on one industry or area. “The transformed DigitalBridge is a direct way for investors to benefit from digital infrastructure investment management on a global basis without being fully invested to one vertical or region,” Choe said. “Investors are looking for focused alternative asset managers and digital infrastructure is highly attractive given long-term growth prospects, scale and return potential.” The analyst added a potential future decline in interest rates will help the company shore up capital, and digital infrastructure will be viewed as a more sound investment to a variety of funds in time. “We believe DBRG will be able to raise capital in a more stable financial environment as rates level off and digital infrastructure gains broader appeal to pension, sovereign wealth and other infrastructure funds,” he said. “DBRG already had as of early August over $1.2b in initial commitments for its next DBP series and raised $3.4b YTD.” — CNBC’s Michael Bloom contributed to this report.
