High Leverage And Rising Costs Will Dampen Data Center Potential

AN

AnalystLowTarget

Not Invested

Community Contributor

Published

06 Jul 25

Updated

14 Jun 26

Views

39

14 Jun

US$30.03

AnalystLowTarget's Fair Value

US$36.21

17.1% undervalued

1Y

1.9%

7D

-5.8%

Loading

1Y

1.9%

7D

-5.8%

Author's Valuation

US$36.2117.1% undervalued

AnalystLowTarget Fair Value

Shared on 14 Jun 26

Fair value Increased 0.85%

GDS: AI Data Center Buildout And China Program Will Drive Upside

GDS steps up plans to build more AI-ready data centers in China as customer demand ramps, and early signs show more capacity getting reserved. New funding and a possible government-led buildout could add momentum, even as analysts temper their expectations for long-run growth.

3 views

Shared on 30 Mar 26

Fair value Increased 8.63%

GDS: Higher Control Concentration And Costly Preferred Shares Will Pressure Shares

Analysts have raised their price target on GDS Holdings by roughly $3, reflecting updated views on fair value, growth assumptions, and future P/E expectations, even as projected profit margins are revised lower. What's in the News GDS issued earnings guidance for 2026, with total revenues expected in a range of RMB 12,400 million to RMB 12,900 million, which implies a projected year on year change of roughly 8.5% to 12.8% (Corporate Guidance).

7 views

Shared on 19 Jan 26

Fair value Decreased 0.80%

GDS: Execution Risk Around 300MW 2025 Leasing Will Pressure Shares

Analysts have slightly reduced their price targets on GDS Holdings, with recent moves such as TD Cowen trimming its target to US$37 and a new Outperform initiation at Macquarie with a US$46.70 target, reflecting updated views on mixed 3Q25 results, maintained 2025 guidance, expectations for 300MW of 2025 leasing, and higher installs in 2026. Analyst Commentary Recent Street research shows a mixed but cautious tone around GDS Holdings, with some bearish analysts trimming expectations even as others initiate coverage with constructive views.

3 views

Valuator

Company Info

Notes

AnalystLowTarget Fair Value

US$36.21

17.1% undervalued

Future estimation in

Revenue

Profit Margin

Future PE

Growth p.a.

%

Decrease

Increase

Forecast revenue growth rate

9.83%

Historical revenue growth rate

9.99%

IT revenue growth rate

0.74%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

13.36%

Calculation

CN¥1.23b

Earnings '29

x

61.68x

PE Ratio '29

=

CN¥75.67b

Market Cap '29

CN¥75.67b

Market Cap '29

/

215.79m

No. shares '29

=

CN¥350.66

Share Price '29

CN¥350.66 Share Price '29

Discounted to 2026 @ 12.85% p.a.

=

CN¥244.01

Fair Value '26

CN¥244.01 Fair Value '26

Converted to USD @ 0.1479 CNY/USD Exchange Rate

=

US$36.08

Fair Value '26