Will Analyst Optimism on GDS Holdings’ (GDS) Expansion Shift Perceptions of Its Long-Term Strategy?

• GDS Holdings Limited has announced it will release its third quarter 2025 unaudited financial results on November 19, 2025, after the Hong Kong market closes and before the U.S. market opens, with management hosting an earnings call that same day to discuss performance and strategy.
• Recent analyst upgrades and optimistic outlooks reflect increasing confidence in GDS Holdings’ growth prospects as it expands its data center operations in China and Southeast Asia.
• With new analyst coverage highlighting optimism about GDS Holdings’ regional expansion, we'll assess how this shapes the company’s investment outlook.

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GDS Holdings Investment Narrative Recap

To be a shareholder in GDS Holdings, you need to believe in the company’s ability to leverage its scale and landbank in China, capitalize on AI and cloud demand, and manage aggressive expansion into Southeast Asia, all while handling high debt and capital requirements. The latest earnings date confirmation is unlikely to materially impact the main short-term catalyst, which remains the normalization of demand and fulfillment of large AI-driven orders, or the ongoing risk of margin pressure from falling average service revenue per square meter.

Among recent developments, the coverage initiated by Macquarie with an “Outperform” rating stands out as directly relevant. This has reinforced positive sentiment as GDS continues to grow its data center footprint in China and Southeast Asia. New analyst attention in this context underscores how critical regional expansion could be for supporting top-line growth, especially as management prepares to discuss strategy on the upcoming call.

By contrast, investors should not overlook the continued risk surrounding customer concentration and what could happen if major clients...

Read the full narrative on GDS Holdings (it's free!)

GDS Holdings' outlook anticipates CN¥16.2 billion in revenue and CN¥734.2 million in earnings by 2028. This is based on 14.1% annual revenue growth and an increase in earnings of approximately CN¥457 million from the current CN¥277.2 million.

Uncover how GDS Holdings' forecasts yield a $47.44 fair value, a 44% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range from CN¥5.80 to CN¥61.83 per share, revealing wide variation in outlooks. Keep in mind, persistent declines in average service revenue per square meter could put pressure on both revenue and margins, which may influence long-term performance across these different projections.

Explore 4 other fair value estimates on GDS Holdings - why the stock might be worth as much as 88% more than the current price!

Build Your Own GDS Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your GDS Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free GDS Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GDS Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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