TD Cowen analyst Michael Elias has maintained their bullish stance on GDS stock, giving a Buy rating today.
Michael Elias has given his Buy rating due to a combination of factors including strong demand from hyperscalers in China and Southeast Asia. Despite reporting downside results for the fourth quarter of 2024 and initial guidance for 2025, the company has secured a significant 152MW deal with a hyperscale provider, indicating robust demand.
Additionally, GDS Holdings is making progress on its C-REIT initiative, which is ahead of schedule, and the company has a substantial 900MW of developable capacity ready to meet AI-inferencing demand. While there is some uncertainty regarding chip supply in China, the company’s ability to execute on potential orders and its confidence in achieving new commitments in 2025 support the positive outlook. These factors contribute to maintaining a constructive long-term perspective on GDS Holdings.
According to TipRanks, Elias is a 4-star analyst with an average return of 7.9% and a 46.38% success rate. Elias covers the Real Estate sector, focusing on stocks such as DigitalBridge Group, Digital Realty, and Equinix.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $40.00 price target.