GDS Holdings, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Daley Li from Bank of America Securities maintained a Buy rating on the stock and has a $47.60 price target.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Daley Li has given his Buy rating due to a combination of factors including GDS Holdings’ strong financial performance and strategic growth initiatives. The company’s revenue and adjusted EBITDA for the second quarter of 2025 exceeded expectations, showing a year-over-year growth of 12% and 11% respectively. This solid performance was driven by increased demand in China and significant new orders, which contributed to an improved utilization rate.
Additionally, GDS’s international business, DayOne, demonstrated rapid expansion with a substantial increase in revenue and adjusted EBITDA. The international segment saw a 1.4x year-over-year revenue growth and a 1.7x increase in adjusted EBITDA, reflecting a successful strategy in expanding IT capacity. These positive financial indicators, along with unchanged guidance for fiscal year 2025, underpin the Buy rating, as they suggest robust growth potential and effective management strategies.
Li covers the Technology sector, focusing on stocks such as VNET Group, Inc. Sponsored ADR, Agora, and GDS Holdings. According to TipRanks, Li has an average return of 79.5% and a 57.14% success rate on recommended stocks.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $50.00 price target.