Morgan Stanley Says Blackstone Digital Infrastructure Backed by Data-Center Demand

Morgan Stanley analysts said Blackstone Digital Infrastructure Trust (BXDC) offers attractive exposure to the growing data-center market, driven by cloud computing and AI expansion.

Recommendation Details

Morgan Stanley upgraded BXDC to Overweight with a $25 price target, implying a 13.6% upside from the current price of $22.

Analyst Rationale

The analysts cite strong demand for data centers fueled by cloud computing and artificial intelligence, which supports BXDC's revenue growth. The trust's diversified portfolio of digital assets also mitigates risk.

Context

The upgrade comes amid robust growth in the data-center sector, with increased capital expenditure from major tech companies. BXDC shares have risen 15% over the past month.

Conclusion

Morgan Stanley's recommendation suggests BXDC could be a suitable investment for those seeking exposure to digital infrastructure, though market volatility remains a risk.