This report is an updated version of the report published on 5 June 2025 at 1:22 PM AEST.

DigiCo Infrastructure REIT (ASX: DGT)

DGT, an Australia-based company, is a diversified owner, operator and developer of data centers, with a global portfolio and broad investment mandate across stabilized, value-add and development opportunities. Its portfolio consists of 13 data centers across key Australian and North American markets with 238-megawatt (MW) of planned information technology (IT) capacity.

Recommendation Rationale – SELL at AUD 3.65

• Trading Around Resistance: The stock has crossed its first resistance (R1) of AUD 3.40 and is approaching R2 of AUD 3.70. However, its 14-day RSI is showing a reading of ~70.72; hence, the stock may witness some retracement.
• Uncertainty Regarding Future Earnings: DGT is yet to report its first earnings as it got listed on ASX on 13 December 2024 after a AUD 2.74bn IPO. Due to its recent exchange debut, ASX has exempted it from half-yearly reporting requirement. The company is expected to report its first full year earnings in August 2025.
• Overvalued Multiples: On a forward 12-month basis - key valuation multiples (EV/EBITDA, EV/Sales and P/E) are higher than median of the real estate industry.
• Valuation & Asset Repricing Risk: DGT’s property valuations could fall due to macroeconomic pressures, interest rate increase, or reduced investor demand. Any negative revaluation due to the above-mentioned factors could affect reported earnings and net tangible asset (NTA) value.

DGT Daily Chart

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 3.65, as of 5 June 2025 at 12:25 PM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 5 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.    

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.