Update shared on27 Aug 2025
Fair value Increased 5.07%GDS Holdings’ consensus price target has increased to $47.25 as analysts cite improved balance sheet strength from asset-backed deals and a REIT IPO, anticipated dual-primary listing in Hong Kong, and resumed high-end chip shipments in China as catalysts for higher valuation and growth.
Analyst Commentary
- Bullish analysts cite improved valuation and balance sheet strength following asset-backed securities deals and a commercial real estate investment trust (C-REIT) IPO, which reduced net debt.
- Anticipation of GDS securing a dual-primary listing in Hong Kong is seen as a catalyst for increased share liquidity and higher valuation.
- JPMorgan highlights the resumption of H20 chip shipments to China as a driver for stronger domestic datacenter performance and upgrades expectations for GDS’s revenue growth pipeline in China.
- The company’s international business momentum is noted as "quite strong," supporting positive sentiment on future earnings.
- Adjusted EBITDA estimates are being modestly trimmed, but bullish analysts roll forward valuation models, resulting in increased price targets despite slightly lower near-term profitability forecasts.
What's in the News
- GDS Holdings confirmed its 2025 earnings guidance, expecting total revenues of RMB 11,290 million – RMB 11,590 million.
- ST Telemedia is exploring the sale of its nearly 34% stake in GDS Holdings, but deliberations are early-stage and a sale is not guaranteed; GDS’s share price has surged, potentially complicating any transaction.
- GDS Holdings' board scheduled a meeting to approve unaudited financial results for Q2 and H1 2025.
Valuation Changes
Summary of Valuation Changes for GDS Holdings
- The Consensus Analyst Price Target has risen slightly from $45.15 to $47.25.
- The Future P/E for GDS Holdings has significantly fallen from 206.28x to 19.12x.
- The Net Profit Margin for GDS Holdings has significantly risen from 3.37% to 4.32%.
Disclaimer
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