Financial Performance: GDS Holdings Ltd. reported a 10.2% increase in third-quarter revenue to 2.89 billion yuan, driven by new commitments for AI-related capacity, while net profit reached 729 million yuan after asset transfers into a REIT.
Market Dynamics: The demand for AI computing is creating a new infrastructure cycle, but GDS faces challenges with slowing new order intake and pricing pressure from traditional clients, despite strong AI demand.
Business Model Transformation: GDS is shifting its operational model by utilizing REITs to offload completed projects, which helps reduce debt and interest expenses in a tightening credit environment.
Investment Outlook: GDS shares have gained about 30% this year but have recently pulled back; the company's valuation remains attractive compared to peers, and it is positioned to benefit from ongoing AI demand amidst regulatory changes in China.
Wall Street analysts forecast GDS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GDS is 43.76 USD with a low forecast of 6.29 USD and a high forecast of 67.12 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
Wall Street analysts forecast GDS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GDS is 43.76 USD with a low forecast of 6.29 USD and a high forecast of 67.12 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 46.510
Low
6.29
Averages
43.76
High
67.12
Current: 46.510
Low
6.29
Averages
43.76
High
67.12
TD Cowen
Buy
downgrade
$38 -> $37
2025-11-20
Reason
TD Cowen
Price Target
$38 -> $37
AI Analysis
2025-11-20
downgrade
Buy
Reason
TD Cowen lowered the firm's price target on GDS Holdings to $37 from $38 and keeps a Buy rating on the shares. The firmsaid they reported mixed 3Q25 results and maintained 2025 guidance. Management expects 300MW of 2025 leasing and higher installs in 2026, which should bode well for revenue and EBITDA growth exiting next year.
Macquarie
Outperform
initiated
$46.70
2025-11-06
Reason
Macquarie
Price Target
$46.70
2025-11-06
initiated
Outperform
Reason
Macquarie initiated coverage of GDS Holdings with an Outperform rating and $46.70 price target.
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BofA
Buy
maintain
2025-08-22
Reason
BofA
Price Target
2025-08-22
maintain
Buy
Reason
BofA raised the firm's price target on GDS Holdings to $50.60 from $47.60 and keeps a Buy rating on the shares. The firm is trimming its FY26-27 adjusted EBITDA estimates by 2%, rolling over its valuation and partly reflecting less net debt post a C-REITS IPO, all of which drives its price target increase.
Citizens JMP
Outperform
maintain
$40 -> $50
2025-08-21
Reason
Citizens JMP
Price Target
$40 -> $50
2025-08-21
maintain
Outperform
Reason
Citizens JMP raised the firm's price target on GDS Holdings to $50 from $40 and keeps an Outperform rating on the shares. GDS Holdings reported Q2 results that were essentially in line with expectations, following the successful launch of its C-REIT, the analyst tells investors in a research note. The firm is increasingly confident in the company's efforts to unlock value through the creation of the C-REIT and the IPO of the international business of which it owns roughly 35.6%.
About GDS
GDS Holdings Ltd is a holding company mainly engaged in the development and operation of high-performance data centers. The Company’s main businesses include the planning and sourcing of new data centers, developing facilities, as well as providing customers with colocation and managed services, which include managed hosting services and managed cloud services. The Company also provides certain other services, including consulting services. The colocation services primarily comprise the provision of critical facilities space, customer-available power, racks and cooling. The suite of managed hosting services includes business continuity and disaster recovery solutions, network management services, data storage services, system security services, operating system services, database services and server middleware services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
