Daiwa analyst Robin Leung says GDS Holdings (GDS)’ public offering of 5.2M American depositary shares at $24.50 came as a “surprise.” However, the share pullback creates a good buying opportunity in the near term as it strengthens GDS’s financial position, the analyst tells investors in a research note. To drive a meaningful re-rating in the shares, Daiwa believes the company must secure new orders and expand its capex guidance. The new funding “provides a buffer against” potential cash outflows if investors exercise their put option on the 2027 convertible bonds, contends Daiwa. It keeps a Buy rating on GDS with a $28.50 price target
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on GDS:
- GDS Holdings sells 6M American depositary shares at $24.50
- GDS Holdings Ltd.: Strong Financial Performance and Strategic Positioning Drive Buy Recommendation
- Closing Bell Movers: Okta slips 12% despite earnings beat
- GDS Holdings 5.2M share Spot Secondary; price range $24.25-$25.25
- GDS Holdings announces offering of $450M of convertible senior notes due 2032