$BXDC

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

Blackstone Digital Infrastructure Trust (BXDC) offers exposure to the growing data-center market, supported by strong demand and a large pipeline of potential acquisitions, Morgan Stanley said Wednesday in a report.The opportunity is tempered by execution risk tied to the company's blind-pool structure and the absence of announced deals, Morgan Stanley said. Long-term leases with fixed annual rent increases may also limit upside if market rents rise faster, the report said.The company is raising $2 billion of equity and aims to buy stabilized, income-producing data centers in the 20- to 100-megawatt range leased to investment-grade hyperscale tenants, Morgan Stanley said. Roughly $25 billion in potential acquisitions have been identified, the report said.Given the focus on secured-power assets in major markets and long-term triple-net leases, Morgan Stanley projects adjusted funds-from-operations per-share growth of 8% annually from 2027 to 2030 in its base case.Morgan Stanley initiated coverage of Blackstone Digital Infrastructure stock with an equal-weight rating and a $23 price target.Price: $22.26, Change: $-0.05, Percent Change: -0.22%

Morgan Stanley Initiates Blackstone Digital Infrastructure Trust at Equalweight With $23 Price Target

Blackstone Digital Infrastructure Trust (BXDC) has an average rating of overweight and mean price target of $23.86, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

Sector Update: Financial Stocks Softer Late Afternoon

Financial stocks were lower in late Monday afternoon trading, with the NYSE Financial Index and the State Street Financial Select Sector SPDR ETF (XLF) each declining 0.5%.The Philadelphia Housing Index was down 0.5%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was falling 1.5%.Bitcoin (BTC-USD) was adding 0.2% to $63,421, and the yield for 10-year US Treasuries rose 1.6 basis points to 4.552%.In economic news, consumer expectations for one-year US inflation growth decreased to a 3.5% gain in May from a 3.6% gain in the previous month, according to a survey released by the New York Federal Reserve Bank on Monday. The median inflation expectations remained unchanged at 3.1% gain for the three-year period and at a 3.0% gain for five years ahead.In corporate news, Allstate (ALL) shares fell 2.4% after Keefe Bruyette & Woods downgraded the stock to market perform from outperform and lowered the price target to $242 from $266.Blue Owl Capital (OWL), Ares Management (ARES), and Golub Capital are among firms targeting a $500 billion opportunity in Mexican pension funds, Bloomberg reported. Reforms have boosted contributions to workers' accounts, while new rules allow the Mexican funds to allocate more to international private-markets managers, the report said. Blue Owl shares were down 4.1%, and Ares rose 0.6%.Goldman Sachs (GS) and JPMorgan Chase (JPM) are exploring trading futures contracts tied to rental prices for graphics processing units, a move that could help lenders manage risks associated with financing AI infrastructure, The Information reported. Goldman shares added 0.6%, and JPMorgan was down 0.3%.Blackstone Digital Infrastructure Trust (BXDC) offers exposure to stabilized data center assets with limited development risk, while projected industry-leading AFFO/share growth and potential cap rate compression provide investment upside, with Blackstone (BX) backing adding to the credibility, BofA Securities said in a note. Blackstone Digital Infrastructure Trust shares rose 1.4%.

Sector Update: Financial Stocks Softer Monday Afternoon

Financial stocks were decreasing in Monday afternoon trading, with the NYSE Financial Index and the State Street Financial Select Sector SPDR ETF (XLF) each declining about 0.4%.The Philadelphia Housing Index was declining 0.5%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was falling 1.4%.Bitcoin (BTC-USD) was adding 2% to $63,421, and the yield for 10-year US Treasuries was rising 2 basis points to 4.556%.In economic news, consumer expectations for one-year US inflation growth decreased to a 3.5% gain in May from a 3.6% gain in the previous month, according to a survey released by the New York Federal Reserve Bank on Monday. The median inflation expectations remained unchanged at 3.1% gain for the three-year period and at a 3.0% gain for five years ahead.In corporate news, Goldman Sachs (GS) and JPMorgan Chase (JPM) are exploring trading futures contracts tied to rental prices for graphics processing units, a move that could help lenders manage risks associated with financing AI infrastructure, The Information reported. Goldman shares rose 1.2%, and JPMorgan was down 0.2%.Blackstone Digital Infrastructure Trust (BXDC) offers exposure to stabilized data center assets with limited development risk, while projected industry-leading AFFO/share growth and potential cap rate compression provide investment upside, with Blackstone (BX) backing adding to the credibility, BofA Securities said in a note. Blackstone Digital Infrastructure Trust shares rose 2%.Carlyle (CG) will acquire Chung Ho Group for $700 million, Bloomberg reported Sunday. Carlyle shares added 0.8%.

BNP Paribas Initiates Blackstone Digital Infrastructure Trust With Outperform Rating, $26 Price Target

BNP Paribas Initiates Blackstone Digital Infrastructure Trust With Outperform Rating, $26 Price Target

Blackstone Digital Infrastructure Trust Offers Data Center Exposure With Limited Development Risk, BofA Says

Blackstone Digital Infrastructure Trust (BXDC) offers exposure to stabilized data center assets with limited development risk, while projected industry-leading AFFO/share growth and potential cap rate compression provide investment upside, with Blackstone (BX) backing adding to the credibility, BofA Securities said in a Monday note.Building on this, the investment firm said that Blackstone's backing and management expertise add credibility. However, these positives are offset by pre-asset acquisition uncertainty, which could drive variance in cap rates, acquisition timing and asset quality versus the brokerage's base case.Blackstone Digital Infrastructure Trust has identified a $25 billion pipeline of acquisition targets in the top-tier markets and expects to deploy its initial public offering capital by early 2027, BofA said, adding that tenants of target properties are hyperscalers such as Microsoft (MSFT), Amazon (AMZN), and Alphabet's (GOOGL, GOOG) Google.Strong projected demand for the data center market is driving record development spending, and exposure to less proven markets and increased counterparty risk at public peers, which has negatively affected valuations in some cases due to near-term AFFO dilution from costs and perceived risks, BofA Securities said.BofA initiated coverage with a neutral rating and a $22.5 price objective on Blackstone Digital Infrastructure Trust.Price: $22.16, Change: $+0.32, Percent Change: +1.47%

Deutsche Bank Initiates Coverage on Blackstone Digital Infrastructure Trust With Buy Rating, $24 Price Target

Bernstein Initiates Coverage on Blackstone Digital Infrastructure Trust With Outperform Rating, $26 Price Target

RBC Initiates Blackstone Digital Infrastructure Trust at Outperform, Speculative Risk With $24 Price Target

BMO Capital Initiates Blackstone Digital Infrastructure Trust at Market Perform With $23 Price Target

Barclays Initiates Blackstone Digital Infrastructure Trust at Overweight With $24 Price Target

JPMorgan Initiates Blackstone Digital Infrastructure Trust at Neutral

Wells Fargo Initiates Blackstone Digital Infrastructure Trust at Overweight With $26 Price Target

Blackstone Digital Infrastructure Trust Shares Fall in NYSE Debut

Blackstone Digital Infrastructure Trust (BXDC) shares fell 1.6% in Thursday trading in their debut on the New York Stock Exchange after the company priced its initial public offering of 87.5 million shares at $20 each.Blackstone Digital Infrastructure is externally managed by a Blackstone (BX) affiliate. The IPO is set to close Friday.Price: $19.69, Change: $-0.31, Percent Change: -1.55%