Bernstein Maintains Buy Rating on Digital Realty with $232 Price Target

Summary

Bernstein analyst Madison Rezaei maintained a Buy rating on Digital Realty (DLR) with a $232 price target, significantly above the $173.88 closing price Tip Ranks. This bullish stance aligns with recent upgrades from Wells Fargo and Guggenheim as the market anticipates DLR’s Q2 earnings release on July 23 businessinsider+ 2.

Impact Analysis

Bernstein’s $232 target is a bold call, implying over 30% upside while the broader market is still digesting a slight downward revision in 2026 EPS estimates Tip Ranks+ 2. The interesting part isn’t just the rating; it’s the timing. With Q2 earnings dropping July 23, this feels like a tactical positioning around the ‘scarcity premium’ of existing data center capacity Market Beat. While FactSet shows analysts trimming 2026 EPS slightly to $1.96, the bulls like Guggenheim are focusing on the ‘hard-to-build environment’ that protects incumbents businessinsider+ 2. If DLR shows strong pricing power or a massive backlog jump in their upcoming report, the market’s current $173 price will look like a steal. I’d read this as a high-conviction bet that AI demand is finally hitting the bottom line faster than supply can catch up. Watch the leasing spreads on July 23—that’s the real tell for whether Bernstein’s $232 is realistic or just optimistic.