Citigroup Maintains Buy Rating on GDS Holdings, Citing In-Line Performance and Outlook

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Citigroup has issued a research report indicating that GDS-SW (09698) reported fourth-quarter revenue of RMB 2.92 billion, representing a 1.2% increase from the previous quarter and an 8.6% increase year-over-year, which aligned with expectations. Full-year revenue reached RMB 11.4 billion, marking a 10.8% annual growth and meeting the midpoint of the company's guidance range. The firm has set a price target of $51.2 for GDS Holdings Ltd (GDS.US) and reaffirmed its "Buy" rating. For the 2026 outlook, the company anticipates full-year revenue between RMB 12.4 billion and RMB 12.9 billion, implying growth of 8.5% to 12.8%, compared to a market consensus of RMB 12.7 billion. Adjusted EBITDA is projected to be in the range of RMB 5.75 billion to RMB 6.0 billion, surpassing the market consensus estimate of RMB 5.7 billion. The capital expenditure target for 2026 is set at RMB 9.0 billion, reflecting robust demand.

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