Goldman Sachs Reaffirms "Buy" Rating on GDS Holdings, Raises Price Target to HK$54

Stock News
03/19

A recent report from Goldman Sachs expressed confidence following GDS Holdings' (09698) Q4 2025 results, reiterating a "Buy" rating on the stock. The firm also increased its price target for the company's US-listed shares (GDS) from $49 to $55 and for its Hong Kong-listed shares from HK$48 to HK$54. Goldman Sachs believes the Chinese data center industry is benefiting from tailwinds driven by accelerating AI investment and robust AI demand. The investment bank forecasts that GDS Holdings' revenue and EBITDA will grow by 10% to 11% year-over-year for the current and next fiscal year, with acceleration to approximately 16% by 2028. For the company's operations in China, Goldman Sachs raised its revenue forecasts for 2026 to 2028 by 0% to 2% and its adjusted EBITDA forecasts by 2% to 3%, reflecting the Q4 2025 performance and 2026 guidance. Due to the time required for capacity delivery, primarily from new builds in emerging markets, and customer move-ins, the acceleration in revenue and adjusted EBITDA growth is expected to become more pronounced starting in 2028. The firm's projections for this year's revenue and adjusted EBITDA are 0.4% below and 0.8% above the midpoint of management's guidance, respectively.

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