On May 26, GDS Holdings-SW rose 3.05% in regular trading, trading at HK$34.42/share, with trading volume of HK$105 million. The rebound follows a cumulative decline of over 15% in recent sessions triggered by concerns over earnings quality and a massive capital expenditure plan.

On the news front, Macquarie recently reiterated its Outperform rating on GDS Holdings with an H-share target price of HK$54.6, while Goldman Sachs also maintained its Buy rating with a 12-month H-share target of HK$54. Both target prices imply approximately 60% upside from the current stock price, providing notable support to market sentiment.

The prior selloff was driven by the company's announcement of a three-year capex plan of RMB 300-500 billion, as well as questions surrounding Q1 profit quality. While net profit surged 247.1% year-over-year, over 80% was attributable to a one-time RMB 2.136 billion investment gain from the disposal of DayOne shares, leaving core operating profit at roughly RMB 600 million. Short-term oversold conditions combined with major bank endorsements appear to have catalyzed the technical rebound.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)