Bank of America Securities: Raises GDS-SW target price to HKD 43.2, reiterates "Buy" rating

Bank of America Securities released a research report stating that the firm participated in the GDS-SW (09698) analyst meeting after the first quarter results, raising its target price for US stocks from $42.5 to $44, and its target price for H shares from HKD 41.7 to HKD 43.2, reiterating a "Buy" rating. Overall, the pace of customer migration has remained stable since the first quarter of 2024. It is expected that the newly added usable area will be approximately 20,000 square meters in the second quarter of 2025, and with the delivery of large projects (152MW), the migration pace may accelerate in the third to fourth quarters of 2025. Management expects adjusted EBITDA to achieve high single-digit growth year-on-year from the second to the fourth quarters of 2025. Additionally, given the improvement in demand in China driving steady revenue growth, as well as the rapid increase in overseas capacity and orders, the firm anticipates that the public REIT planned for issuance in the second half of 2025 may become a potential positive catalyst