Digitalbridge: Solid Positioning But Valuation Remains High (nyse:dbrg)

DigitalBridge Group, Inc. (NYSE:DBRG) is an investment manager that focuses on digital infrastructure, which aligns with the long-term trends of 5G, cloud computing, edge computing, and AI/ML workloads. Despite the company’s strong growth prospects, its valuation is significantly higher than its peers, leading to a hold rating for the stock. DigitalBridge reported strong fee revenue results in the first quarter of 2023, and is targeting to raise an additional $8 billion in FEEUM in 2023. DigitalBridge is establishing itself as a leading global digital infrastructure platform through its asset-light business model, however, the uncertain timing of FEEUM inflows in the current volatile financial market, coupled with an uncertain macroeconomic outlook, poses challenges.