Analyst Andy Yu CFA from DBS maintained a Buy rating on GDS Holdings Ltd. (G401 – Research Report) and increased the price target to HK$52.00 from HK$26.00.
Andy Yu CFA has given his Buy rating due to a combination of factors that highlight GDS Holdings Ltd.’s strong market position and growth potential. As a leader in the carrier-neutral data center sector in China, GDS is well-positioned to benefit from the increasing demand for data centers driven by the rise of AI applications such as DeepSeek. This demand is expected to support the company’s domestic business growth, with a projected capacity increase of 13% year-over-year by the end of FY24.
Additionally, GDS’s international expansion plans, including an upcoming IPO and REIT issuance, are seen as catalysts that could accelerate the company’s growth and deleveraging efforts. The market anticipates a 20% EBITDA growth for GDS from FY24 to FY26, and the company’s valuation is considered justified when compared to global peers. These factors, combined with a stabilizing pricing trend, underpin the Buy rating with higher target prices set at HKD52/USD54.
According to TipRanks, Yu CFA is ranked #1107 out of 9347 analysts.