BUZZ-Digital Realty rises; Deutsche Bank turns bullish

Shares of data center landlord Digital Realty DLR.N up 2.3% at $177.63 early Weds amid broader rally in equities, and Deutsche Bank upgrade to 'buy' from 'hold'

Wall Street's main indexes rallying after data allays inflation fears, and batch of big US banks post strong earnings .N

S&P 500 real estate sector .SPLRCR, seen as a bond-proxy, up 1.6% on the session as yields fall US/

Deutsche Bank boosts PT on the real estate investment trust (REIT) by $9 to $194, implying ~12% upside to last close of DLR's shares

In preview note on communications infrastructure space, brokerage says the stock remains arguably the preferred/most widely held name among the group

"Momentum remains at DLR's back, with robust demand and space/power constraints that are unlikely to moderate any time soon creating a highly favorable demand and pricing backdrop," Deutsche Bank writes

Brokerage says $1-bln-plus in LTM (last 12 months) bookings and nearly $900 mln (record) backlog help de-risk future growth, adding it anticipates DLR's mid-single-digit core FFO/sh growth in 2025E could accelerate in 2026E and beyond

17 of 26 analysts rate DLR "strong buy" or "buy", 8 rate "hold". while 1 recommends "sell" with median PT of $201, per LSEG data

With move on Weds, stock has gained nearly 30% over the past year, aided by strong AI-related leasing

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))