VNET Group upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Timothy Zhao upgraded VNET Group (VNET) to Buy from Neutral with a price target of $5, up from $3.10. The company is transforming itself from a traditional retail internet data center operator to a fast-growing China wholesale operator, the analyst tells investors in a research note. The firm expects “robust” whole internet data center business growth for VNET, driven by artificial intelligence training and inference demand. The company has obtained solid order pipeline over the next two years from customers in internet, contends Goldman.